The market is looking for more clues on Mr Trump's spending plans in the first speech since his shock win in November, pushing the dollar lower.
In the national capital, gold of 99.9 and 99.5 per cent purity climbed Rs 330 each to Rs 29,030 and Rs 28,880 per ten gram, respectively, a level last seen on December 5 when it had closed at Rs 29,050.
Brent crude futures, the international benchmark for oil prices, were trading at $55.14 per barrel, up 20 cents from their last close.
Hedge funds and money managers cut their bullish positions in COMEX gold contracts for the eighth straight week in the week to January 3, taking their holdings to the smallest in 11 months, data showed on Friday.
A stronger US dollar weighed as the currency surge made it more expensive to hold dollar-denominated commodities.
Dealers in India, the world's second-largest consumer of the metal, were charging a premium of up to $1 an ounce this week over official domestic prices.
Spot gold eased 0.2 percent to $1,178.41 per ounce by 0255 GMT. The metal on Thursday hit its highest since Dec. 5 at $1,184.90.
The potential supply cuts are aimed at meeting Saudi Arabia's commitment to cut production in a deal by the Organization of the Petroleum Exporting Countries to reduce global oversupply and prop up prices.
Sentiment took a turn for the better after gold advanced to its highest level in four weeks in global markets as the US dollar retreated from a 14-year peak hit earlier this week, according to traders.
Traders said the decline came on the back of worries that plans by the Organization of the Petroleum Exporting Countries (OPEC) and other leading producers to cut crude supply would be fully implemented.
OPEC member Kuwait also lifted expectations that producers will stick to a deal to reduce oversupply by scaling back production after its state-owned oil producer said on Wednesday it would cut output in the first quarter.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity shot up by Rs 200 each to Rs 28,550 and Rs 28,400 per 10 grams, respectively.
The themes of late 2016 appeared to be persisting in the wider markets, with equities rising while the dollar index touched a 14-year high boosted by strong economic data.
To provide cash-less transactions, the government had asked oil companies to pay consumers 0.75 per cent discount on cashless fuelling of petrol and diesel at petrol pumps.
Non-OPEC Middle Eastern oil producer Oman told customers last week that it would cut its crude oil term allocation volumes by 5 per cent in March.
The expected decline in the sugar production during SY17 (sugar year 2016-17) along with the drop in stocks in SY16 and the impact of global sugar deficit scenario also led to firming up of domestic prices in October 2016, Icra head-corporate ratings Sabyasachi Majumdar said.