Silver also moved up by Rs 200 to Rs 45,100 per kg on increased offtake by industrial units and coin makers.
Traders said besides fresh buying by jewellers and retailers, firm global trend as a drop in equities and the dollar spurred demand for an alternative investment mainly boosted the sentiment.
Gold in London, which normally sets price trend on the domestic front, rose by 0.5 per cent to USD 1,326.18 an ounce, the highest since July 3, and silver by 0.5 per cent to USD 21.14 an ounce.
In Delhi, gold of 99.9 and 99.5 per cent purity rose by Rs 65 each to Rs 28,125 and Rs 27,925 per ten gram, respectively. Sovereign followed suit and traded higher by Rs 100 to Rs 24,900 per piece of eight gram.
In a similar fashion, silver ready went up by Rs 200 to Rs 45,100 per kg and weekly-based delivery by Rs 210 to Rs 44,935 per kg. Silver coins, however, remained steady at Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces.