Gold futures up by 1.2% on positive global cues

Pick up in demand at the spot market also influenced prices

Gold remained higher for the second straight day and prices shot up by another 1.19% to Rs 28,655 per 10 grams in futures trade today, tracking a firming trend overseas.

Besides, pick up in demand at the spot market in view of wedding season further fuelled the uptrend.

At the Multi Commodity Exchange, gold for delivery in April jumped up by Rs 338, or 1.19%, to Rs 28,655 per 10 grams, in a business turnover of 560 lots.

On similar lines, the yellow metal for delivery in June traded higher by Rs 326, or 1.14%, to Rs 28,860 per 10 grams in four lots.
 

Analysts attributed the rise in gold futures to a firming global trend where gold jumped to the highest level in eight months after Federal Reserve Chair Janet Yellen signaled that the US central bank may delay further interest-rate increases should the turmoil in global markets continue.

Globally, gold rallied 1.5% to $1,214.64 an ounce, the highest since May 22 in Singapore.