Gold futures closed higher in the domestic market on Tuesday getting a boost from political uncertainty in the U.S., as investors awaited Federal Reserve Janet Yellen's testimony to Congress this week for cues on the timing of expected interest-rate hikes.
Prices for the yellow metal gave up earlier losses as the dollar weakened and U.S. equities fell in the immediate wake of Donald Trump Jr.'s release of emails linked to a meeting with a Russian lawyer last year.
Rising real interest rates lower the opportunity costs of holding gold because the metal provides no yield, and entices investors to rotate into riskier assets like stocks. Higher rates may also boost the value of the dollar, which usually moves in the opposite direction of the gold price.
At the MCX, gold futures for August 2017 contract ended at Rs 27830 per 10 grams, up by 0.13 per cent, after opening at Rs 27,742 against a previous close of Rs 27,794. It touched the intra-day high of Rs 27,870.