Silver too climbed by Rs 270 per kg on increased offtake by industrial units.
Standard gold (99.5 purity) rose by Rs 165 to finish at Rs 28,560 per 10 grams from Monday's closing level of Rs 28,395.
Pure gold (99.9 purity) also gained by a similar margin to close at Rs 28,710 per 10 grams against Rs 28,545.
Silver (.999 fineness) gained by Rs 270 to conclude at Rs 40,910 per kg from yesterday's close of Rs 40,640.
Spot gold hit its highest since Dec 5 at USD 1,187.61 an ounce and was up 0.2 percent to USD 1,183.61 an ounce at early European trade.
Silver was flat at USD 16.57 an ounce.