Silver price also rose sharply owing to increased demand from industrial units as well as speculative build-up.
Standard gold (99.5 purity) firmed up by Rs 55 to end at Rs 26,660 per 10 grams from last Saturday's closing level of Rs 26,605.
Pure gold (99.9 purity) also moved up by a same margin to finish at Rs 26,810 per 10 grams from Rs 26,755.
Silver (.999 fineness) shot up by Rs 245 to conclude at Rs 41,110 per kg from Rs 40,865 last weekend.
Globally, the yellow metal traded marginally higher on short-covering, while a rally in stocks curbed the metal's rise.
Spot gold was bid higher at USD 1,253.84 an ounce in early European trade.