Silver also regained on the back of speculative interest coupled with higher industrial demand.
Standard gold (99.5 purity) rose by Rs 95 per 10 grams to finish at Rs 31,635 from Friday's closing level of Rs 31,540.
Pure gold (99.9 purity) went up by Rs 90 per 10 grams to close at Rs 31,765 from Rs 31,675.
Silver ready (.999 fineness) firmed up by Rs 120 per kg to conclude at Rs 61,760 as compared to Rs 61,640 yesterday.
On the global front, gold gained marginally from its oversold positions amid caution ahead of highly anticipated US budget talks and uncertainty surrounding the fiscal cliff.
Gold for December delivery advanced by 90 cents to settle at USD 1,714.70 an ounce on the comex division of the NYMEX late yesterday.
While silver for December contract eased by 30 cents to close at USD 32.37 an ounce.