The Indian gold futures zoomed today as the Indian Rupee tumbled by half percent to near a 4-week low of 56.425 against the greenback as sentiment was hurt on concerns that Spain might require a bailout.

MCX August gold futures are trading up more than Rs 100 at Rs 29677 per 10 grams. The Indian gold futures have been holding well above Rs 29000 recently and a move above RS 29800 may again head it towards its nearly 1 month high mark of Rs 30000. It had last fallen below Rs 29000 in mid may and since then it had been frequently hitting Rs 30000 in entire month of June.

The rupee on Wednesday fell by 18 paise to 56.29 against the US dollar in early trade at the Interbank Foreign Exchange market, extending its losing streak for the fourth straight session as the American currency gained strength against other currencies overseas.

The rupee had ended lower by 14 paise at 56.11 against the dollar on Tuesday due to continued dollar buying by importers. Meanwhile, the BSE benchmark Sensex fell by 140 points, or 0.83 per cent, at 16,779.

In other currencies, the U.S. dollar faded a bit in Asian trading hours on Wednesday, after hitting a two-year high in the previous session on intensified concerns about Europe's troubles. The ICE dollar index fell to 83.954, from 84.009 in late North American trading Tuesday, when it reached a two-year high after a report that Greece will require additional debt restructuring.

Ahead of U.K. second-quarter gross domestic product data the British pound traded flat at $1.5510. The dollar continued to fall against the Japanese yen, buying 78.17 yen on Wednesday, compared to ¥78.19.

COMEX august gold futures are trading up $ 1585 up $5 an ounce. The counter continues to face resistance near $1600 levels as the US dollar continues to hover around the 2 year highs against the single currency.

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