In addition, depreciating rupee which again dipped below the 60-level against the dollar, making import of precious metals expensive, also influenced the sentiment.
Silver also gained for the third-day and jumped by Rs 500 to Rs 43,000 per kg on increased offtake by industrial units and coin makers.
Traders said sentiments remained firm after gold climbed to almost three-week high in global markets as escalating violence in Iraq spurred demand for the safe-haven.
They said hike in import tariff value on gold and silver also influenced bullion prices.
Meanwhile, the government today hiked import tariff value on gold and silver to USD 411 per 10 grams and USD 632 per kg, respectively, as global prices have increased.
Gold in Singapore, which normally sets price trend on the domestic front, added 0.6 per cent to USD 1,283.96 an ounce, the highest level since May 27 and silver climbed one per cent to USD 19.88 an ounce, the highest level since May 14.
In Delhi, gold of 99.9 and 99.5 per cent purity climbed Rs 240 each to Rs 28,030 and Rs 27,830 per ten grams, respectively, a level last seen on May 27. The yellow metal had gained Rs 690 in the previous five sessions.
Sovereign followed suit and advanced by Rs 100 to Rs 24,700 per piece of eight grams.
In a similar fashion, silver ready rose further by Rs 500 to Rs 43,000 per kg and weekly-based delivery by Rs 450 to Rs 42,325 per kg. The white metal had gained Rs 1,300 in last two days.
Silver coins also spurted by Rs 1,000 to Rs 78,000 for buying and Rs 79,000 for selling of 100 pieces.