Gold futures in India rose to a fresh high of Rs 29,091 per 10 grams on Tuesday, tracking a firm trend in the overseas bullion markets amid continued safe haven buying by investors rattled by a fresh wave of selloff in risky assets. At 10:04 a.m., the October contract on the Multi Commodity Exchange (MCX) was up ~0.3% to Rs 28,559 per 10 grams. Gold for delivery in February shot up by Rs 156, or 0.5%, to Rs 29,091 per 10 grams, with a business turnover of six lots. The metal for delivery in October rose by Rs 88, or 0.3%, to Rs 28,573 per 10 grams in 1,934 lots. Gold for December settlement rose by Rs 78, or 0.2%, to Rs 28,833 per 10 grams, with a business turnover of 183 lots. In the international trading, spot gold was trading above US$1,900 an ounce and could touch a new record amid relentless 'flight-to-safety' buying. Cash gold gained as much as 0.6% to US$1,911.07 an ounce, trading within 0.2% of the all-time high of US$1,913.50 reached Aug. 23. It was at US$1,910.27 as of 12:34 p.m. Singapore time. Futures for December delivery in New York were at US$1,912.40, up 1.9% from their close on Sept. 2. Floor trading in the US was closed on Monday for the Labor Day holiday. Global investors have been flocking to the yellow metal amid mounting concerns about a slowdown in the US economy and due to the inability of eurozone officials to announce a lasting solution for the region's debt crisis. Meanwhile, the Indian rupee declined for a second day today, as local stocks extended losses from the previous session after data showed that growth in India’s services industry slowed last month to the lowest level in more than two years.

Source