Silver also rallied on speculative buying to mark to reclaim 37,000 per kg level.
Standard gold (99.5 purity) climbed by Rs 495 to end at Rs 26,845 per 10 grams (the rate not seen since June 19) as compared to Thursday's closing level of Rs 26,350.
Pure gold (99.9 purity) also rose by a similar margin of Rs 495 to finish at Rs 26,995 per 10 grams as against Rs 26,500 yesterday.
On the global front, gold slightly eased in early European trade as initial rally to six-week highs ran out of steam, but remained on track for its biggest weekly gain since mid-January as more bad economic data from China battered financial markets.
Spot gold was trading slightly down by USD 1,150 an ounce in early European trade, and spot silver also lower at USD 15.38 an ounce.