A potentially divided US government with Republicans in control of the Senate may mean a smaller fiscal stimulus package, but that could put the spotlight on the Federal Reserve to do more to revive the economy.
Gold futures on MCX were up 0.16 per cent or Rs 82 at Rs 52,249 per 10 grams. Silver futures rose 0.90 per cent or Rs 587 to Rs 65,922 per kg.
In the spot market, gold prices jumped Rs 791 to Rs 51,717 per 10 grams on Friday, rallying for the third consecutive day, supported by a rally in global precious metal prices, according to HDFC Securities. In tandem with a rise in gold, silver also zoomed Rs 2,147 to Rs 64,578 per kg.
Globally, gold prices edged higher in early Asian trade, propped up by a weaker dollar and hopes of more stimulus measures under U.S. President-elect Joe Biden.
Spot gold rose 0.1 per cent to $ 1,953.45 per ounce by 0049 GMT. On Friday it hit $ 1,960.13, the highest since Sept. 18. US gold futures rose 0.2 per cent to $ 1,955.60 per ounce.
The dollar index was hovering near a more than two-month low.
Holdings in SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, rose 0.63 per cent to 1,260.30 tonnes on Friday.
Speculators cut their net long position in COMEX gold by 9,657 contracts to 121,951 in week to Nov. 3, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Silver rose 0.5 per cent to $ 25.72 per ounce. Platinum gained 0.8 per cent to $ 896.04, while palladium fell 0.4 per cent to $ 2,480.76.