On MCX, gold prices rose over 1% to Rs 50,703 per 10 gram. Gold touched record highs but silver rallied to multi-year highs surpassing gold. Silver prices climbed marginally today on MCX to trade at Rs 61,120 per kg.
In international market, gold prices climbed over 1% to a nine-year high on Thursday, buoyed by weaker dollar and unprecedented stimulus measures to revive coronavirus-hit economies, while rise in US jobless claims underpinned fears of a slow recovery.
The number of Americans filing for unemployment
benefits unexpectedly rose last week for the first time in nearly four months, suggesting the labor market was stalling amid a resurgence in new Covid-19 cases.
"It (jobless claims data) tells you that at least here in the States, we still have a long way to go before we recover," said Edward Meir, analyst at ED&F Man Capital Markets.
Spot gold was up 1.2% to $1,893.71 per ounce by 11:34 a.m. ET (1533 GMT), having hit its highest since September 2011 at $1,894.53.
US gold futures rose 1.4 % to $1,891.10.
Indicative of investor sentiment, holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.4% to 1,225.01 tonnes on Wednesday, the highest since March 2013.
"Gold could overshoot much higher to the upside, but the subsequent decline will be quite dramatic as well ... As more economies reopen and return to normal activity, the economic data improves then there will not be much need to pile up in gold," Xiao said.
Elsewhere, silver fell 1.4% to $22.70 per ounce, after rallying to a nearly seven-year high, spurred by hopes for a revival in industrial activity.