Gold prices spurt by Rs 266 to Rs 30,847 per 10 gm in futures trade after the government today raised import duty on the precious metal to 6 per cent from 4 per cent earlier.
Besides, a firming trend in the global markets supported the upside.
Gold for delivery in February month contracts shot up by Rs 266, or 0.86 per cent to Rs 30,847 per 10 gm on the Multi Commodity Exchange, with a business turnover of 32,603 lots.
On the similar lines, the precious metal for delivery in far-month April was trading Rs 202,or 0.64 per cent higher at Rs 31,499 per 10 gm, with a business volume of 6,377 lots.
Market analysts said speculative positions created by participants after the government hiked import duty on gold to 6 per cent from 4 per cent pushed up precious metal prices.
"The rise in gold prices was mostly attributed to fresh positions created by speculators on hopes of further rise in view of a hike in import duty and ongoing wedding season demand," said Rakesh Anand, a Delhi-based trader.
The government has hiked the import duty on gold and platinum to 6 per cent from 4 per cent with immediate effect, a move aimed at curbing import of the precious metals and check widening current account deficit.
Meanwhile, at spot markets in the national capital, gold prices shot up by Rs 315, to Rs 31,250 per 10 gram.
Globally, gold rose by USD 4.60, or 0.27 per cent to USD 1,689.30 an ounce in London.