Meanwhile, major economies including the European Union continue to work on another stimulus package, lifting prospects of gold, which is a hedge against inflation.
Gold futures on MCX were up 0.26 per cent or Rs 131 at Rs 50,300 per 10 grams. Silver futures advanced 0.05 per cent or Rs 33 to Rs 62,574 per kg.
In the spot market, gold prices witnessed a muted trend in the national capital on Wednesday, rising marginally by Rs 3 to Rs 50,114 per 10 gram amid choppy global prices, according to HDFC Securities. Silver prices rose Rs 451 to Rs 62,023 per kilogram.
Globally, gold prices inched lower on Thursday, after dropping over 1 per cent in the previous session, pressured by a firmer dollar and optimism over a Covid-19 vaccine related developments bolstering risk appetite.
Spot gold fell 0.1 per cent to $1,863.70 per ounce by 0048 GMT. US gold futures were flat at $1,862.20.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.72 per cent to 1,240.74 tonnes on Wednesday.
Silver fell 0.4 per cent to $24.16 per ounce. Platinum was flat at $865, while palladium rose 0.3 per cent to $2,321.88.