Gold prices edged higher for a second day after dropping in the last week, as the dollar weakened against a basket of currencies.
In the international markets gold also moved higher on physical buying in Asia and a soft dollar. The precious metal was last trading at $1,215 an ounce.
Gold at the MCX in the futures market also saw some gains, following a rise in the international markets.
On the MCX, gold for Oct delivery was trading at Rs 29,171, higher by Rs 26 per 10 grams. In the spot market too gold was trading at a similar levels.
The precious metal is expected to remain steady in the next few days, ahead of next month's US Fed policy. Any reports of hike in interest rates could have negative influence for gold.