Gold Futures rallied on the MCX as the deadline for the raising the debt ceiling in the US draws near. Gold for December delivery was trading at Rs 29,370, up Rs 63.
Silver, which moves in tandem with gold also gained ground and was trading at Rs 49,171, up Rs 162 on the MCX.
Gold and silver are expected to remain firm ahead of a crucial decision by the US Congress to raise the US debt ceiling or risk the prospects of a default.
Should an agreement be reached between the Democrats and the Republicans over raising the debt ceiling, gold prices could fall.
Also, physical demand is likely to be subdued in India one of the largest consumers of gold. In fact, in September trade data released shows that gold imports in India fell by 80 per cent.
A series of duty hikes by the government in India to curb the consumption of gold has reduced demand there.
The duty hikes have come in the wake of deteriorating current account deficit in the country. Check gold rates here