In the futures market, gold touched an intraday high of Rs 51,580 and a low of Rs 51,242 on the MCX
Gold prices rose Rs 425 to 51,476 per 10 gram in the Mumbai market tracking weakness in the dollar.
The Dollar Index, measured against a basket of six currencies, slipped 0.15 percent to trade at 93.11.
The yellow metal is trading in a narrow trading range above $1,940 per troy ounce on uncertainty surrounding the Brexit withdrawal deal and concerns over rising COVID cases, which kept risk premiums high.
The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 38,607, Rs 47,152 and Rs 51,476, respectively, plus 3 percent GST.
The focus will be on US consumer price index (CPI) number that will be released on September 11. Expectations that the price rise could remain subdued could push the US Federal Reserve to remain more dovish on the policy outlook. The Fed will be releasing its policy statement next week and is likely to trigger volatility in the greenback.
MCX iCOMDEX Bullion Index gained 37.04 points, or 0.23 percent, at 16,139.07 at 17:27 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Navneet Damani, Vice President, Motilal Oswal, expects gold to trade in the range of Rs 51,000 and Rs 51,700.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities, too sees the precious metal trading in a similar range. In dollar terms, he expects gold prices to trade sideways to up with support at $1,910 and resistance at $1,970.
The gold-silver ratio currently stands at 77.88 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices soared Rs 1,544 to Rs 66,091 per kg from its closing on September 10.
In the futures market, gold touched an intraday high of Rs 51,580 and a low of Rs 51,242 on the Multi-Commodity Exchange (MCX). For the October series, the yellow metal touched a low of Rs 45,596 and a high of Rs 56,191.
Gold futures for October delivery gained Rs 63, or 0.12 percent, at Rs 51,465 per 10 gram in evening trade on a business turnover of 12,523 lots. The same for December jumped Rs 54, or 0.10 percent, at Rs 51,667 on a business turnover of 6,181 lots.
The value of the October and December contracts traded so far is Rs 2,365.55 crore and Rs 233.26 crore, respectively.
Similarly, Gold Mini contract for October edged higher by Rs 14, or 0.03 percent at Rs 51,500 on a business turnover of 16,262 lots.
At 1207 (GMT), spot gold was marginally up $1.51 at $1,948.13 an ounce in London trading.For all commodities related news, click here