Besides, depreciating rupee which fell to almost five-month low of Rs 61.41 (intra-day) against the US dollar, making imports costlier, influenced gold prices.
However, silver fell by Rs 950 to Rs 44,050 per kg due to slackened demand from industrial units.
Bullion merchants said besides increased buying by jewellers and retailers to meet festive season demand, costlier imports due to weakening of the rupee, led to the rise in gold prices.
They said a firming trend overseas where gold climbed towards USD 1,300 an ounce also supported the uptrend.
Gold in Singapore, which sets price trend on the domestic front, gained 0.3 per cent to USD 1,292.26 an ounce.
In Delhi, gold of 99.9 and 99.5 per cent purity rebounded by Rs 110 each to Rs 28,500 and Rs 28,300 per 10 grams, respectively. Sovereign followed suit and moved up by Rs 100 to Rs 24,800 per piece of eight grams.
On the other hand, silver ready declined by Rs 950 to Rs 44,050 per kg and weekly-based delivery by Rs 445 to Rs 43,645 per kg, while silver coins continued to be enquired at previous level of Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.