Gold prices recovered by 0.44 per cent to Rs 27,880 per 10 gram at the futures trade as participants created fresh positions in line with a firm trend overseas on speculation that the biggest decline this year may spur demand.

On the Multi Commodity Exchange, gold for delivery in far-month October rose Rs 123 or 0.44 per cent to Rs 27,880 per 10 gram in a business turnover of seven lots.

Similarly, the metal for delivery in August moved up by Rs 113 or 0.41 per cent to Rs 27,875 per 10 gm in a turnover of 238 lots.

Analysts said fresh positions created by participants taking lead from the overseas market on speculation that the biggest decline this year may spur demand, mainly supported the upside in gold prices at the futures trade here.

Meanwhile, the yellow metal traded 0.2 per cent higher at $1,309.61 an ounce in Singapore.

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