Gold prices in India traded over 1 percent higher on the Multi Commodity Exchange (MCX) Monday following a positive trend in the international spot prices while silver prices also jumped more than 4 percent.

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At 10:50 am, gold futures for February delivery rose 1.13 percent to Rs 50,874 per 10 grams as against the previous close of Rs 50,304 and the opening price of Rs 50,515 on the MCX. Silver futures traded 4.05 percent higher at Rs 70,655 per kg. The prices opened at Rs 68,958 as compared to the previous close of Rs 67,907 per kg.

US congressional leaders reached an agreement on a $900 billion COVID-19 stimulus package on Sunday, with votes likely on Monday.

“The safe-haven appeal and investment demand in gold is coming back. Rising COVID-19 cases in UK and Europe along with the approval of stimulus package in the US is supporting the gold prices,” said Amit Sajeja, VP Research - Commodities & Currencies at Motilal Oswal.

International gold prices jumped as much as 1 percent to a near one-and-a-half-month high, driven by news that an agreement on a long-awaited US fiscal stimulus deal had been reached, a Reuters report said.

Spot gold rose 0.8 percent to $1,896.39 per ounce, having earlier hit its highest since November 9 at $1,899.29. US gold futures gained 0.7 percent to $1,902.70.

Experts believe the trend in gold and silver prices remains positive and investors should use dips to buy into the precious metals. Gold prices may test the $1,910 per ounce level soon.

“On MCX, gold may face resistance at Rs 51,200 level while support is seen at Rs 50,500 level. Silver may find resistance at Rs 71,500 level and support at Rs 69,400 level,” Sajeja said.

Meanwhile, weak Indian rupee against the US dollar amid volatility in the domestic equity market also supports gold prices.

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