Gold was seen trading higher tracking international market which was supported by weakness in dollar, and also investors short covering their positions helped the sentiment.
Dollar eased against the basket of currencies after touching eight-month high. As dollar and gold price are inversely related any positive movement in the dollar will impact on gold sentiment.
The international gold was seen trading at $1,107 an ounce. In India, gold futures for the latest delivery on the Multi Commodity Exchange was seen trading at Rs 25,191 per 10 grams higher by 0.049 per cent at 2.10 pm IST. It touched an intra-day high of Rs 25,218 during the trade.
Earlier, gold witnessed pressure on the talk of interest rate hike, which would dampen the gold sentiment as investors would dump gold for other instruments.
Investors are eying the Federal Reserve's policy meet which is held on December 15-16. Any speculation on U.S. rate hike, will have a impact on the gold sentiment.