Gold futures were up by Rs 77 to Rs 30,054 per 10 gram as speculators raised their bets amid positive cues from global markets.
At the Multi Commodity Exchange, gold for delivery in June was trading higher by Rs 77, or 0.26 per cent, to Rs 30,054 per 10 gram, in a business turnover of 634 lots.
The metal for delivery in far-month August rose Rs 62, or 0.62 per cent, at Rs 30,310 per 10 gram, in a turnover of 68 lots.
Analysts attributed the rise in gold prices to a firming trend overseas as holdings in exchange-traded funds backed by the metal climbed for a 14th straight day, reaching the highest in more than two years.
Besides, a drop in the dollar also boosted demand for bullion as an alternative asset, they added.
Meanwhile, gold was trading 0.38 per cent higher at USD 1,278.90 an ounce in Singapore.