International gold surged to 5-week high on Thursday after weak US sales data, soft dollar also supported the sentiment.
Weak data indicates that US economy is not performing as expected. The Federal Reserve mentioned in its previous statement that, interest rate hike will depend on the US economy.
Any further delay in hike in interest rate will move money away from gold to debt investments.
Gold movement was hindered due to speculations on interest rate hike, strong dollar and fall in oil prices. Internationl gold surged to $1, 215 an ounce.
Following the firm trend overseas, spot gold in India surged by Rs 325 at three-month high of Rs 27,890 per 10 grams, supported by wedding season demand. Check today's gold price in various cities here.
In India, gold futures on the Multi Commodity Exchange was seen trading at Rs 27,471 per 10 grams lower by 0.21 per cent at 02.50 pm IST.
The fall in gold price was due to profit booking and offloading the positions by speculators at the current levels.