Gold futures were trading higher tracking firm global cues supported by weakness in equities due to Chinese currency Yuan devaluation.
At the Multi Commodity Exchange, gold for delivery in October rose by Rs 390, or 1.53%, to Rs 25,816 per 10 grams at 2.04 pm IST.
The metal for delivery in far-month December traded higher by Rs 404, or 1.58%, to Rs 26,027 per 10 grams.
International gold was seen trading at $1,117 an ounce.
China's surprise move to devalue its currency weighed on the global equities which in turn supported the yellow as it is considered as Safe haven metal during the times of uncertainties.
According to few economist, there are less chances that China's devaluation will have any impact on the decision of interest rates hike.