Silver also followed the yellow metal and rebounded following speculative off-take coupled with good industrial support.
Standard gold (99.5 purity) firmed up by Rs 135 to quote at Rs 28,335 per 10 grams at 1400 hrs from Rs 28,200 previously.
Pure gold (99.9 purity) also gained by Rs 125 to Rs 28,485 per 10 grams from Rs 28,360, according to Riddisiddhi Bullions Ltd.
Silver (.999 fineness) climbed by Rs 358 to Rs 42,608 per kg at 1400 hrs from the overnight level of Rs 42,250.
In the New York market, gold held below USD 1,300 an ounce yesterday, as recent data showing a pickup in the US economy helped draw some investors away from the metal and towards the stock market, sustained a loss of around 3 per cent in gold prices for the week.
Gold for June delivery fell 50 cents to settle at USD 1,294.30 an ounce on the Comex division of the New York Mercantile Exchange late yesterday, while May silver up by 8 cents to finish at USD 19.79 an ounce.