Silver also surged owing to increased demand from industrial users.
Standard gold (99.5 purity) gained Rs 40 to close at Rs 26,190 per 10 grams from Friday's closing level of Rs 26,150.
Pure gold (99.9 purity) also rose by a similar margin to end at Rs 26,340 per 10 grams from Rs 26,300.
Silver (.999 fineness) jumped by Rs 155 to finish at Rs 36,350 per kg compared to Rs 36,195 yesterday.
On the global front, Gold prices were higher at the London spot market yesterday, as dollar softened somewhat following worse-than-expected jobs data out of the US. The US markets remained closed yesterday for Independence Day.