As for futures, Gold for December delivery on Comex added a solid $18.90, or 1.3%, to settle at $1,507.90 an ounce, extending the prior sessions gain on 1.1% while Silver for December delivery put on 38.1 cents, or 2.2%, to $17.683 an ounce. On MCX, gold futures prices rose 1% to ₹38,266 per 10 gram. Tracking gold, silver also jumped, with prices jumping 1.75% to ₹45,636 per kg.
On the trade war front, tensions have now eased after a Bloomberg report on Saturday quoting Treasury spokeswoman Monica Crowley said that USA exchanges are not contemplating on blocking Chinese companies from being listed on American stock exchanges at this time.
"For the short term, there is some confusion considering the contradicting headlines we are getting on the trade war", said AxiTrader market strategist Stephen Innes.
The White House is not contemplating such a move at this time, Bloomberg quoted Treasury spokeswoman Monica Crowley as saying on Saturday, after Reuters reported on Friday the United States administration was considering the measure.
The dollar index held near its highest in a week.
Contradicting news reports have created short term confusion among traders who are choosing to switch their position from equities to bonds, which makes the USA dollar gain.
Further, on Sunday, Chinese Vice Commerce Minister Wang Shouwen said the two largest economies of the world would be resolving their trade dispute "with a calm and rational attitude".
Investors were also awaiting clues on U.S. interest rate policy.
Higher interest rates tend to reduce investor interest in non-yielding bullion.
"A less dovish than expected Fed means the rally on gold prices may be capped, but in the near-term, the upward momentum appears intact", said Howie Lee, economist at OCBC Bank.
Speculators raised their bullish positions in COMEX gold and reduced bullish bets on silver contracts in the week to September 24, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Silver dropped over 1 per cent to $17.33 per ounce and platinum was down almost 1 per cent to $929.77 per ounce.