At 11: 33 am, the most-active gold for December delivery about the Multi Commodity Exchange (MCX) was 0. 52% higher from Rs 26, 450 per 10 grams.
"There are issues on euro crisis, " which may lead to recuperation in gold, " Subhrasom De, an analyst with Karvy Comtrade, stated.
Buying could be done at Rs 26, 750, for any target of Rs 27, 450/27, 600, with a stop lack of below Rs 26, 000, said Dey.
Jitters over the actual spiralling European debt crisis, European banks' exposure to sovereign debt along with a slowing global economy caused investors to cut their bets on risky assets within the July-September quarter, sending the euro down almost 10 cents versus the dollar within the period.
European Central Bank member Christian Noyer said on Monday it's unrealistic to expect an increase in Europe's bailout fund beyond that which was agreed in July, but that he is open to schemes that could allow leveraging to expand capacity.
Analysts said reviving physical demand for that yellow metal could also aid sentiment.
Demand for precious metal in India, the world's biggest consumer of bullion, will gain pace in October and November as a result of series of festivals and the peak season for partnerships, before tapering off in December.
Silver prices are prone to extend gains following the yellow metal.
Silver for Dec delivery was 1. 11% higher at Rs 51, 750 for each kg.
Buying could be done in silver above Rs fifty four, 500, for a target of Rs 57, 400/58, two hundred, said Dey.
Source : Business-Standard