Gold futures were seen trading higher on Monday tracking global trends with the precious metal rising on sluggish US economic data providing less room for interest rate hike.
Weakness in dollar against euro and other currencies supported the sentiment.
The Federal Reserve will not hike interest rate unless the US economy lifts from the present positions was what analysts believe.
Any hike in interest rate will move money away from gold to debt investments, which should see gold prices dropping.
At the Multi Commodity Exchange, gold futures for latest delivery was seen trading at Rs 27,625, higher by 0.59 per cent at 2.10 pm IST.
Physical demand for the spot gold increased due to the wedding season also lifted the sentiment.
Speculators and investors widened the positions, tracking international market which surged to three month high on weak US data.