A weaker dollar also boosted the appeal of gold as an alternative asset. Weaker greenback makes gold cheaper for those holding other currencies, thus boosting demand.
Gold futures for October 2014 contract, at MCX, is trading at Rs. 27,917 per 10 grams, up by 0.49 per cent, after opening at Rs. 27,824, against the previous closing price of Rs 27,780. It touched an intra-day high of Rs 27,934. (At 11:07 AM)