Gold futures rose after Federal Reserve Chairman Ben S. Bernanke assured that he will take more action if necessary which in turn weakened the greenback and boosted sentiment for the precious metal. Overseas spot gold price rose and was seen at US $1,649 a troy ounce.

Hopes rekindled after the Federal Reserve hinted on a quantitative easing, or "QE"3. QE3 is a mechanism wherein the central bank buys financial assets to inject more liquidity into the system to push economic growth. Thus more money sparks a rally in commodities. However, the problem with quantitative easing is that it tends to push inflation higher.

At 2.15 pm IST, the gold for June delivery on the Multi Commodity Exchange (MCX) was trading at Rs 28,914 after having reached an intraday high of Rs 28,925. The precious metal opened at Rs 28,859 per 10 grams.

On the domestic front, gold of 99.9 and 99.5% purity advanced by Rs 100 each to Rs 29,340 and Rs 29,200 per 10 grams, respectively.

Silver for May delivery on MCX opened at Rs 55,334 per kg and was trading at Rs 55,474 per kg.

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