Gold tends to gain when interest rates are low, which reduces the opportunity cost of holding non-yielding bullion. Gold is also seen as a hedge against inflation and uncertainty.
Gold futures on MCX were up 0.89 per cent or Rs 470 at Rs 53,250 per 10 grams–hovering at record highs. Silver futures added 1.44 per cent or Rs 902 to Rs 63,572 per kg.
Gold prices in the national capital rose by Rs 118 to Rs 53,860 per 10 gram on Thursday amid rupee depreciation, according to HDFC Securities. Silver prices, however, declined by Rs 2,384 to Rs 64,100 per kg.
Globally, gold rose on Friday en route to its best month in more than four years as the dollar slid further after dismal US data added to doubts about a swift recovery from the pandemic-induced economic slump, driving investors towards the safe-haven metal.
Spot gold was up 0.4 per cent at $1,966.31 per ounce by 0251 GMT after snapping a nine-session winning streak in the previous session. U.S. gold futures rose 1 per cent to $1,959.70.
The U.S. dollar fell to a two-year low and was on course for its worst month in a decade, making bullion cheaper for investors holding other currencies.
Gold has risen more than 10 per cent so far this month, its biggest monthly percentage gain since February 2016, having soared to an all-time high of $1,980.57 on Tuesday.
Among other metals, silver was up 0.1 per cent at $23.56 an ounce, on course for its best month on record — at 30 per cent, with additional support coming from hopes for a revival in industrial activity.
Platinum eased 0.2 per cent to $900.82 and palladium dropped 0.5 per cent to $2,073.54.
