Silver, however, lacked necessary buying support at prevailing prices and shed Rs 50 to Rs 54,750 per kg.
Traders said sustained buying by investors and stockists mainly led to the rise in gold prices.
Gold of 99.9 and 99.5 per cent purity strengthened by Rs 85 each to Rs 29,650 and Rs 29,510 per 10 grams, respectively. The metal has gained Rs 265 in the last two sessions.
Sovereign remained steady at Rs 23,850 per piece of eight grams in scattered deals.
Silver ready shed Rs 50 to Rs 54,750 per kg, while weekly-based delivery traded marginally higher by Rs 10 to Rs 54,720 per kg.
Silver coins continued to be asked around previous level of Rs 64,000 for buying and Rs 65,000 for selling of 100 pieces.