International gold rose on Monday supported by weak dollar which slipped after the US Labour market data. The bullion gained 1 per cent on Friday. International spot gold was seen at $1,222 an ounce.
Gold and Dollar are inversely related any downtrend seen in dollar will have positive impact on gold. Means weak dollar makes the precious metal cheaper for those holding other currencies, thus raising demand for gold.
The data sparked speculation that the Federal Reserve would be patient in increasing the interest rates. As increase in interest rates will dampen the gold sentiment.
The continued downtrend seen in oil prices was having less impact on the the yellow metal. Other wise, the slip in oil price tends to hurt gold sentiment as it is considered as a hedge against oil-led inflation.
At the MCX, Gold futures for February 2015 contract was seen at Rs 26,940 per 10 gram, higher by 0.52 per cent. It touched the intra-day high of Rs 27,073 during the trade.