Oil prices fell after the long Christmas weekend, with international crude and product markets still well supplied in excess of demand.
Gold is positively correlated to oil as the metal is seen as a hedge against petroleum-led inflation.
Early next year, gold should move lower as the dollar will remain strong in the first half of next year.
The 30-share BSE Sensex rose 99.48 points to 25938.19 and the 50-share NSE Nifty climbed 23.90 points to 7884.95. About 1022 shares have advanced, 355 shares declined, and 90 shares are unchanged on the BSE.