Tracking a firm trend overseas, gold prices advanced by 0.11 per cent to Rs 31,720 per 10 grams in futures trading on Tuesday as speculators enlarged positions. At the Multi Commodity Exchange, gold for delivery in April rose by Rs 35, or 0.11 per cent to Rs 31,720 per ten grams in business turnover of 804 lots.
Analysts said raising of bets by participants on the back of a firming trend in the global markets where gold prices rose as the dollar languished near two-week lows on growing expectations the Fed would shift to a more accommodative policy stance, influenced gold prices at futures trade. Globally, gold rose 0.31 per cent to $1,308.30 an ounce in New York.
Gold prices fell in futures trade in Monday's session as the increased appetite for riskier equities hit the demand of safe-haven metal.
A slump in demand at the spot market and a weak trend in overseas markets also hit the metal.