Silver also rose by Rs 100 to Rs 45,000 per kg on increased demand from industrial units.
Bullion merchants said besides increased buying by jewellers and retailers to meet festive season demand, a firming global trend influenced gold prices.
Gold in Singapore, which normally sets price trend on the domestic front, traded a shade higher at USD 1,294.35 an ounce from USD 1,293.75 on August 1.
In Delhi, gold of 99.9 and 99.5 per cent purity gained Rs 125 each to Rs 28,525 and Rs 28,325 per 10 grams, respectively. The yellow metal had gained Rs 200 in the previous three sessions.
Sovereign moved up by Rs 100 to Rs 24,800 per piece of eight grams.
Silver ready also rose by Rs 100 to Rs 45,000 per kg and silver weekly-based delivery by Rs 95 to Rs 44,520 per kg. It had gained Rs 50 in last trade.
Silver, however, continued to be asked at last level of Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.