Market analysts said speculators enlarged their positions on the back of overnight gains on the US markets. This mainly led to rise in gold prices at futures trade. International spot gold was steady around $1,196 an ounce.
A stronger dollar tends to put pressure on gold, dampening the demand as alternative asset. US Federal Reserve hinted at raising interest rates in the second half of next year which is considered bearish for gold.
Gold futures for December delivery was seen trading at Rs 26,521 per 10 grams, up by Rs 58. Similarly, the metal for far-month delivery February 2015 contracts rose by Rs 39, to Rs 26,840 per 10 grams at 1.50 PM IST. Check the gold rates here
Silver futures for December delivery was trading higher by Rs 332 at Rs 36,151 for 1 kgs on the Multi Commodity Exchange. Check silver rates in different cities.