Silver also rose by Rs 400 to Rs 43,000 per kg on increased offtake by industrial units and coin makers.
Traders said rebound in gold prices was mostly in tandem with a firming global trend on speculation that prices near a two-month low will spur purchases.
Besides, emergence of buying by jewellers as well as retailers to meet seasonal demand, influenced gold prices, they said.
Gold in Singapore, which normally determines price trend on the domestic front, rose by one per cent to USD 1,289.06 an ounce and silver by one per cent to USD 19.54 an ounce.
In Delhi, gold of 99.9 and 99.5 per cent purity recovered by Rs 230 each to Rs 28,260 and Rs 28,060 per 10 grams, respectively. It had lost Rs 790 in the previous nine straight sessions.
Sovereign, however, continued to be traded steady at Rs 24,600 per piece of eight grams in limited deals.
In line with a general firm trend, silver ready rose by Rs 400 to Rs 43,000 per kg and weekly-based delivery by Rs 295 to Rs 42,195 per kg.
On the other hand, silver coins remained steady at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.