However, silver held steady at Rs 56,100 per kg in restricted buying activity.
Trading sentiment in gold remained firm after it climbed to a one-week high in New York, as concern that Europe's sovereign debt woes are deepening spurred demand for a safe haven investment.
In New York last night, gold shot up by USD 19.30 to USD 1,660.60 an ounce, the biggest jump since March 30.
Besides sustained buying by stockists for the ongoing marriage season, volatile trend in equity market also forced some investors to park their funds in rising gold supporting the upswing in yellow metal prices.
On the domestic front, gold of 99.9 and 99.5 per cent purity advanced by Rs 250 each to Rs 28,900 and Rs 28,760 per 10 grams, respectively. The metal had gained Rs 510 in last three trading sessions. Sovereigns followed suit and added Rs 50 to Rs 23,550 per piece of eight grams.
On the other hand, silver ready held steady at Rs 56,100 per kg, while weekly-based delivery rose by Rs 55 to Rs 56,155 per kg.
Silver coins continued to be asked around previous level of Rs 63,000 for buying and Rs 64,000 for selling of 100 pieces.