In contrast, silver continued to witness aggressive unwinding from speculators and traders amid subdued industrial off-take.
Standard gold (99.5 purity) spurted by Rs 80 to settle at Rs 29,610 per 10 grams from overnight closing level of Rs 29,530.
Pure gold (99.9 purity) also went up by Rs 85 to close at Rs 29,745 per 10 gm from Rs 29,660 yesterday.
Silver ready (.999 fineness) however, dropped by Rs 310 per kg to finish at Rs 52,980 as compared to Friday's close of Rs 53,290.
On the global front, gold staged a strong come back and rallied above the psychological USD 1,600 mark following fresh measures taken by European leaders to tackle the regions worst debt crisis, triggering a global relief rally in equities and commodities.
Gold for August delivery zoomed by USD 53.80 to USD 1,604.20 an ounce on the Comex division of the NYMEX late yesterday.
Silver for July contract soared by USD 1.33 cents to close USD 27.58 an ounce.