Silver also gained for the second day and advanced by Rs 650 to Rs 35,700 per kg due to increased offtake by industrial units and coin makers.
Bullion traders said a firming global trend where gold held near the highest level since October after waning bets on US interest rate rise weakened the dollar, mainly boosted the sentiment here.
Globally, gold traded higher at USD 1,142.89 an ounce in Singapore from yesterday's USD 1,142.63, when it surged 1.5 per cent to USD 1,145.67, the highest level since October 30.
The precious metals had gained Rs 350 in last four days.
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Sovereign, however, held steady at Rs 22,600 per piece of eight grams in scattered deals.
Following gold, silver ready surged by Rs 650 to Rs 35,700 per kg and weekly-based delivery by Rs 655 to Rs 35,600 per kg.
Silver coins too spurted by Rs 1,000 to Rs 52,000 for buying and Rs 53,000 for selling of 100 pieces on upsurge in wedding season demand.