Gold futures rise 0.31% on positive global cues

Gold prices rose 0.31 per cent to Rs 30,430 per 10 gram in futures trade today as speculators widened positions amid firm global cues.

At the Multi Commodity Exchange, gold for delivery in June rose Rs 94, or 0.31 per cent, to Rs 30,430 per ten grams in a business turnover of 2 lots.

Likewise, the yellow metal for delivery in April contracts was trading higher by Rs 84, or 0.28 per cent, at Rs 30,302 per ten grams in 181 lots.

Analysts said expansion of positions by participants in tandem with a firm trend overseas, buoyed by a weaker dollar led to the rise in gold futures.

Gold rose 0.44 per cent to USD 1,335.10 an ounce in Singapore. 

Meanwhile, The dollar slid to a 15-month low against the yen on Wednesday, as investors remained on edge ahead of key U.S. inflation numbers later in the day, underscoring fragile risk sentiment following the recent shakeout in equity markets.

The U.S. currency was 0.8 percent lower at 106.960 yen after plumbing 106.840, its weakest since November 2016, with a drop in Japanese shares increasing demand for the yen which is often sought in times of market turmoil.

The dollar had enjoyed a brief respite against its Japanese peer overnight as U.S. shares managed to gain for the third successive session on Tuesday following last week's sharp downturn. But it began to wobble again as Japan's Nikkei surrendered early gains and fell to four-month lows on Wednesday.

Near-term focus was on how far the dollar would slide against the yen after falling below 107.320, which was seen as a key technical level, with the market paying little heed to jawboning by Japanese officials.

Japan's Chief Cabinet Secretary Yoshihide Suga warned on Wednesday that stable currency market moves were "extremely important", signalling concern over recent yen gains that could undermine a strengthening economic recovery.

"Trend-following macro funds see the yen appreciating further. There are no fresh factors, but for speculators, anything that appears yen-supportive is welcome, even in hindsight," said Yukio Ishizuki, senior forex strategist at Daiwa Securities in Tokyo.