Gold futures up on firm global cues

August gold adds 0.14% as hopes of borrowing costs remaining low in the US fuel demand for bullion as alternative investment

Gold futures prices rose 0.23 per cent to Rs 27,720 per 10 grams today as speculators enlarged positions after the precious metal rose to two-month high in global markets.

At the Multi Commodity Exchange gold for delivery in October rose by Rs 63, or 0.23 per cent, to Rs 27,720 per 10 grams with a business turnover of 9 lots.

August gold moved up by Rs 39, or 0.14 per cent, to Rs 27,650 per 10 grams with a trade volume of 629 lots.

Market analysts said the rise in gold futures was mainly in line with a firming trend in overseas markets as expectations that borrowing costs in the US will remain low, fueled demand for bullion as an alternative investment.
 

Meanwhile, gold climbed to $1,322.12 an ounce in Singapore, the highest level since April 15, after a 3.3 per cent jump yesterday that was the biggest increase since September last year.