Silver also spurted on heavy speculative demand owing to good industrial buying.
'The US elections and the subsequent results over President Obama win had reinforced his economic policy and investor's sentiment in yellow metal', dealers said.
Standard gold (99.5 purity) shot-up by Rs 405 per 10 grams to end at Rs 31,180 from Tuesday's closing level of Rs 30,775.
Pure gold (99.9 purity) climbed by Rs 410 per 10 grams to finish at Rs 31,320 from Rs 30,910.
Silver ready (.999 fineness) zoomed by Rs 1,050 per kg to close at Rs 60,775 as compared to Rs 59,725 previously.
In Europe, gold jumped on weak dollar amid President Barack Obama's re-election bolstering the hopes over continuation of easy monetary policy.
Spot gold was bid higher at USD 1,726.31 an ounce, in early trade and silver was bid up at USD 32.19 an ounce.