Silver also gained by Rs 25 to Rs 44,300 per kg on increased offtake by industrial units and coin makers.
Bullion merchants said increased buying by jewellers and retailers to meet rising demand, driven by ongoing festive season demand, boosted the sentiment.
Besides, deprecating rupee that made imports costlier also influenced gold prices, they said.
Gold in Singapore, which normally determines price trend on the domestic front, traded a shade higher at USD 1,310.85 an ounce and silver by 0.70 per cent to USD 20.56 an ounce in yesterday's trade.
In Delhi, gold of 99.9 and 99.5 per cent purity advanced by Rs 70 each to Rs 28,820 and Rs 28,620 per ten grams respectively. It had gained Rs 25 yesterday.
Sovereign, however, continued to be traded at previous level of Rs 24,800 per piece of eight gram on scattered demand.
In a similar fashion, silver ready rose further by Rs 25 to Rs 44,300 per kg and weekly-based delivery by Rs 55 to Rs 43,830 per kg.
Silver coins were unaltered at Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.