Gold rose on Monday, helped by overall weakness in the dollar and expectations for increased economic support following Joe Biden's victory in the US presidential election.

Spot gold was up 0.3% to $1,957.99 per ounce at 1058 GMT, having earlier hit its highest since Sept. 16 at $1,965.33. US gold futures gained 0.4% to $1,959.30.

"What we're seeing is the market's response to a Biden win," said independent analyst Ross Norman, adding expectations of a significantly lower dollar in the immediate term were positive for gold.

The dollar index steadied but held close to a more than 10-week low, bolstering appeal for gold among those holding other currencies.

Gold's gains also came alongside a surge in equities, which were driven by bets that Biden's win would translate into improving global trade ties and more monetary stimulus. "The market has been treating gold more as a risk asset rather than a safe haven asset," said Fawad Razaqzada, market analyst with ThinkMarkets.

While a potentially divided US congress may mean a smaller fiscal stimulus package, that could put the spotlight on the Federal Reserve to prop up the pandemic-hit economy.

Lower interest rates reduce the opportunity cost of holding non-yielding gold, which is also considered a hedge against likely inflation and currency debasement spurred by unprecedented global stimulus to fight the economic hit from a worsening pandemic.

Improving physical demand, especially from India and China and going into the key gold-buying festival of Diwali, was also positive for gold, Norman said.

Silver rose 0.7% to $25.77 per ounce. Platinum gained 1.4% to $901.38, while palladium fell 1.7% to $2,448.05.