Sentiment improved further as demand for jewellery, coins and bars have increased as the slump in prices to a 34-month low boosted physical demand for the yellow metal at existing levels.
Moreover, weaker greenback makes gold cheaper for those holding other currencies, thus increasing demand. The U.S. dollar index, a measure of the value of the United States dollar relative to a basket of foreign currencies was trading 0.02 per cent lower at 83.118 on the Inter-Continental Exchange (ICE) at 11.22 am IST.
At the Commodity Exchange (COMEX), gold future for August 2013 delivery traded at US$1,246.2 per ounce, up by 1.84 per cent. It opened at US$1,232.9 against the previous closing price of US$1,223.7. It touched the intra-day high of US$1,247.4. (At 11.20 am IST).