The yellow metal took positive cues from the global market amid pick-up in domestic demand.
Silver, however, met with resistance at prevailing levels and dropped Rs 450 to Rs 35,950 per kg.
Bullion traders said sentiment in gold remained firm after a weak manufacturing report weakened the case for the US Fed to raise interest rates next month, which pushed up gold prices here.
Globally, gold advanced 0.2 per cent to USD 1,119.88 an ounce in Singapore.
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Besides, a pick-up in buying by jewellers to meet rising seasonal demand supported the upside, the traders added.
The government yesterday raised import tariff on gold to USD 363 per 10 grams and that for silver to USD 499 per kg, taking strong cues from the global market.
For the first fortnight of this month, the import tariff of gold and silver stood at USD 354 per 10 grams and USD 498 per kg, respectively.
Sovereign, however, continued trade at the previous level of Rs 22,400 per piece of eight grams.
On the other hand, silver ready dropped Rs 450 to Rs 35,950 per kg and weekly-based delivery by Rs 155 to Rs 35,745 per kg. Silver coins held steady at Rs 50,000 for purchase and Rs 51,000 for sale of 100 pieces.