Silver also advanced by Rs 400 to Rs 42,500 per kg on increased demand from industrial units and coin manufacturers.
Traders said sentiments remained bullish after gold made further headway in global market as escalating violence in Iraq boosted demand for the precious metal as a safe-haven.
Gold in New York, which normally sets price trend on the domestic front, gained less than 0.1 per cent to USD 1,274.10 an ounce and silver rose 0.6 per cent to USD 19.655 an ounce.
Depreciating rupee against the dollar, making imports costlier, also buoyed the sentiment, they said.
In Delhi, gold of 99.9 and 99.5 per cent purity rose Rs 190 each to Rs 27,790 and Rs 27,590 per ten grams, respectively. It had gained Rs 500 in the previous four sessions.
Sovereign followed suit and gained Rs 100 to Rs 24,600 per piece of eight grams.
In line with a general firm trend, silver ready increased by Rs 400 to Rs 42,500 per kg and weekly-based delivery by Rs 505 to Rs 41,875 per kg. The white metal had surged by Rs 900 yesterday.
However, silver coins held steady at Rs 77,000 for buying and Rs 78,000 for selling of 100 pieces.