Weak rupee is also boosting demand for gold. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
At 2.40 pm IST, the gold for April delivery on the Multi Commodity Exchange (MCX) was trading at Rs 28,289.00 up by Rs 113 or 0.40%. It touched intraday high of Rs 28,365 per 10 grams.
While the metal for June delivery edged up at the level of Rs 28,630 per 10 grams up by Rs 129 or 0.45%.
But spot gold on MCX decreased marginally and was seen trading at Rs 28,060 per 10 grams. Spot silver was seen trading down at Rs 26,209 per 10 grams.
While, silver for March delivery on MCX was trading at of Rs 56,020 per kgs down by Rs 137 or 0.24%.
On the domestic front, gold of 99.9 and 99.5 per cent purity declined by Rs 40 each to Rs 28,490 and Rs 28,350 per 10 grams, respectively
International gold was seen trading at US $1,732.90 a troy ounce.