International gold prices rose and was seen trading at US$ 1,578 a troy ounce. Recently, US dollar has spiked against major currencies of the world due to ongoing debt crisis in euro zone had weighed on gold.
Moreover, the Euro zone finance ministers failed to agree on a final figure for aid to the debt stricken banks in Spain which in turn has dampened investor confidence.
Back in India, gold of 99.9 and 99.5% purity was at Rs 29,600 and Rs 29,425 per 10 grams, respectively. Ahmadabad Spot gold on MCX was seen at Rs 29,098 per 10 grams. The physical buying in India seems steady as traders said that the buyers are still waiting for a further price correction.