Elsewhere, silver also rallied due to bullish speculative buying amid good industrial demand.
Standard gold (99.5 purity) climbed by Rs 295 per 10 grams to close at Rs 25,310 from Friday's closing level of Rs 25,015.
Pure gold (99.9 purity) also rose by a similar margin to end at Rs 25,460 per 10 grams against Rs 25,165.
Silver (.999 fineness) advanced by Rs 375 to conclude at Rs 33,985 per kg compared to Rs 33,610 previously.
Spot gold was up 1.2 per cent at USD 1,073.20 an ounce in early trade.
Silver was up 1.4 per cent at USD 13.98 an ounce.