Gold has suddenly reached to the interest of investors and jewelers. Prices of the yellow metal rose 0.84 per cent on and touched the highest in 33 months.
The price rose due to fresh buying from investors amid expectations of easy monetary policy by leading economies across the world.
Standard gold in the Zaveri Bazaar seen a gain of Rs 260 at Rs 31,480 for 10 gms on Tuesday following global cues. This level of gold price was not seen after October 2013, reported Business Standard.
Physical traders, however, abstained from fresh buying on expectations of a correction in prices following a long-due profit booking.
Funds have started picking up stake in gold resulting in the yellow metal extending gains into the second day after expectations on interest rate hike by the US Federal Reserve this year diminished.
Gold prices surged as dollar remained under pressure after weak US economic data tempered expectations of a near-term interest rate hike by the Federal Reserve.