Gold futures rose sharply on the back stronger energy prices and weaker dollar and managed to give strong weekly closing above $950/oz

Silver futures continued to outperform Gold in percentagewise returns as strength in Industrial metals kept buyers active.

Investment demand, which have been dropping since last fifteen days finally an uptick came on Friday, the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust said holdings stood at 1,066.41 tonnes as of Aug. 21, up 0.92 tonnes from the previous business day.

Short-term money inflows into commodities, including gold, and other risky assets helped prop up the precious metal on Friday after a strong U. S. housing sales report and upbeat comments from Federal Reserve Chairman Ben Bernanke.

The dollar index weakened on Friday as risk appetite was seen improving which also supported bullion prices.

India's gold demand may revive if prices fall by another 6 percent from current levels even as it registered a 38 percent fall in demand in the second quarter of 2009, the World Gold Council said.

U. S. gold demand in the second quarter rose 10 percent year-over-year as nearly doubled investment demand offset weaker jewelry buying, according to an industry report by the World Gold Council released on Wednesday.

We expect Gold prices to trade up during the day as Indian wedding season coupled with stronger crude oil prices may trigger another round of buying in precious metals and due to strength in industrial metals silver too likely to outperform in today’s session