Gold rebounds in futures trade on global cues

Gold for delivery in August recovered by Rs 163 to Rs 29,065 per 10 grams

Gold prices rose by Rs 163 to Rs 29,065 per 10 grams in futures trade today as speculators enlarged their positions, taking positive cues from global markets.

At the Multi Commodity Exchange, gold for delivery in August recovered by Rs 163, or 0.56%, to Rs 29,065 per 10 grams, with a business turnover of 258 lots.

Similarly, the metal for delivery in June also shot up by Rs 158, or 0.55%, to Rs 28,685 per 10 grams in 2,177 lots.

Analysts attributed the recovery in gold prices at futures trade to a firming trend overseas on speculation that the US Federal Reserve may announce more stimulus measures for the economy after an unexpected contraction in a regional manufacturing gauge and turmoil in Greece may boost demand for precious metals.

Meanwhile, gold spurted by $34, or 2.21%, to $1,574.30 an ounce in New York yesterday.