The gold prices in India increased by Rs 40, or 0.15 %, to Rs 27,369 per 10 grams in futures trade on Monday.

The demand increased as speculators boosted sales and due to the fall of the rupee. The gold for delivery in February rose by Rs 40, or 0.15 %, to Rs 27,369 per 10 grams at the Multi Commodity Exchange counter. It recorded a business volume of 1,254 lots

The gold for delivery in April rose Rs 34, or 0.12 %, to Rs 27,696 per 10 grams. The business volume for April delivery stood at 60 lots.

Analysts say that fall in the value of rupee, which plays an important role in cost of the dollar-traded metal, is the reason for the increased price. The price is expected to increase doe to decline in rupee and as most overseas metals markets were closed. The gold for February delivery ended at 27,329 rupees per 10 grams on the Multi Commodity Exchange (MCX).

In the beginning of 2012, Gold will remain in range of Rs. 26000 and Rs. 28000 per 10 grams, according to analysts. The Institute for Supply Management is set to release a report on manufacturing in the month of December, something which will be closely watched by the investors.