On the MCX, gold futures for December delivery on Tuesday gained as much as 2% and settled higher by 1.45% at Rs. 48486 per 10gm.
This has come on the back of gains in gold prices internationally. Gold in the international market on Tuesday gained as much as 1.8% to $1809 per ounce.
Silver on the other hand gained a whopping 5 percent. In the futures market, gold jumped also proportionately by Rs. 3078 or 5 percent to Rs. 62200.
Growing cases of coronavirus eclipsed hopes of a sooner than expected global economic recovery plus amid it dollar dived to an over 2-year low.
And amid all this drag, there can be stimulus being doled out by the US which shall brighten the prospect of gold going ahead.
Dollar fell on hopes of a higher stimulus package. "The bottom was in for gold now and we see prices north of $2,000 next year," said Daniel Ghali, commodity strategist at TD Securities.
Platinum rose 2.3% to $987.42 and palladium rose 1.7% to $2,412.91.