Gold prices have edged up at over five-year highs on Thursday in global markets. The prices have hiked by Rs 761 to Rs 33,840 per 10 gram in futures trade.
Gold has been trading on a positive note for the last four weeks on growing geopolitical concerns and weak economic releases from U.S. and China that lifted its safe haven appeal. Weak global growth forecast amid growing trade war tensions also stoked investors towards the yellow metal.
On the Multi Commodity Exchange, gold contracts for August delivery traded higher by Rs 761, or 2.30 per cent, at Rs 33,840 per 10 gram in a business turnover of 18,785 lots.
Gold contracts for October delivery also rose by Rs 719, or 2.16 per cent, to Rs 34,000 per 10 gram in 4,068 lots.
Market analysts said the rise in gold prices was mostly due to widening of positions by participants in domestic markets.
Globally, gold was trading 2.81 per cent higher at USD 1,386.70 an ounce in Singapore. New York witnessed nearly $1,400 an ounce, which is also the highest since 2013.
A trade deal between US and China might shift the investors towards riskier assets, denting the appeal for gold, domestic brokerage Angel Broking said in a note. A close observation is being done on these talks.
(With inputs from PTI)