Global cases of the coronavirus continued to rise, with British Prime Minister Boris Johnson hinting at tighter lockdown restrictions, while Japan considered declaring a state of emergency for the capital Tokyo and surrounding areas.
MCX gold futures rose 1.23% or Rs 616 to Rs 50,860 per 10 grams. Silver futures added 2.21 percent or Rs 1,504 to Rs 69,627 per kg.
The dollar index remained weaker against its rivals on Monday, making gold cheaper for holders of other currencies.
On the spot market, gold fell slightly from Rs 20 to Rs 49,678 per 10 grams on Friday in the nation’s capital, according to HDFC Securities. Silver has also fallen from Rs 404 to Rs 67,520 per kilogram.
Globally, gold prices hit an eight-week high on Monday, hitting above $ 1,900, as global cases of COVID-19 soared and countries pushed for more lockdowns despite the deployment of vaccines.
Spot gold rose 0.8% to $ 1,912.71 an ounce at 0102 GMT, its highest level since November 9, while US gold futures rose 1.0. 1% to $ 1,916.40.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.08% to 1,170.74 tonnes on Thursday.
Physical demand for gold remained largely subdued in major Asian hubs last week as the holidays kept buyers at bay.
Silver gained 2.4 percent to $ 26.98 an ounce. Platinum gained 0.6% to $ 1,075.15 and palladium rose 0.6% to $ 2,461.95.