Silver also gained due to heavy speculative buying support on the back of industrial demand.
Standard gold (99.5 purity) surged by Rs 155 to end at Rs 29,235 per 10 gm from Monday's closing level of Rs 29,080.
Pure gold (99.9 purity) also strengthened by a similar margin of Rs 155 to close at Rs 29,365 per 10 gm from Rs 29,210.
Silver ready (.999 fineness) rose by Rs 120 per kg to conclude at Rs 54,840, as compared to Rs 54,720 yesterday.
In Europe, gold was trading soft on weak euro amidst eurozone debt crisis following heightened concerns over Spanish banks.
Spot gold was bid lower at USD 1,572.94 an ounce in early trade and silver was also bid down at USD 28.21 an ounce.
