Supported by a rebound in overseas markets, gold futures prices rose 0.12 per cent to Rs 27,999 per 10 grams today, as speculators created fresh positions after falling over 3 per cent yesterday.

At the Multi Commodity Exchange, gold for delivery in most-active, April contract recovered by Rs 47 or 0.12 per cent to Rs 27,999 per 10 grams with a business turnover of 2,256 lots. The contract had ended 3.2 per cent lower at Rs 27,952 per 10 grams yesterday.

In a similar fashion, the metal for delivery in June moved up by Rs 36 or 0.11 per cent to Rs 28,377 per 10 grams with a trade volume of 98 lots.

Analysts attributed the recovery to a rebound in overseas markets as investors bought the metal after it fell to the lowest level in more than a month. Gold rose 1.4 per cent $1,720.47 an ounce in Singapore in early trade today.

The metal lost 4.9 per cent yesterday in the biggest one-day slump since December 1, 2008 after the Federal Reserve Chairman gave no signal that the US central bank will take new steps to bolster the economy.

comment COMMENT NOW