Gold futures closed higher in the domestic market on Friday as reports of another missile test by North Korea and continued weakness in the U.S. dollar boosted demand for the precious metal.
The dollar maintained earlier losses, sending it lower for the week, after the Commerce Department reported second-quarter gross domestic expanded at 2.6% annual pace in the second quarter, a pickup from a revised 1.2% pace in the first quarter but weaker than forecast.
North Korea apparently conducted another missile test, BBC News reported Friday, citing media reports in Japan and South Korea. The news gave gold an added lift as it fed uncertainty, prompting traders to seek out safer investments.
At the MCX, gold futures for August 2017 contract ended at Rs 28590 per 10 grams, up by 0.40 per cent, after opening at Rs 28,477 against a previous close of Rs 28,476. It touched the intra-day high of Rs 28,595.