Gold futures rose in the domestic market on Monday tracking a firm trend in the overseas market amid speculation that the US Federal Reserve may maintain record stimulus in the near-term as the labour market recovery fails to sustain traction.
The world's biggest economy added fewer than expected workers last month, a sign that a sustained recovery of the job market remains far away, strengthening the case for the Fed to maintain its monthly USD 85 billion bond buying program, boosting the appeal of the precious metal, which is a hedge against the inflationary risk of monetary stimulus.
A pickup in physical demand for the precious metal following the recent slump in prices also supported gold futures.
Gold futures for August 2013 contract, at MCX, were trading at Rs. 28,535 per 10 grams, up by 0.20 per cent after opening at Rs. 28,598 against the previous closing price of Rs. 28,477. It touched an intra-day high of Rs 28,630. (At 10:53 AM).