Silver also rebounded sharply, owing to robust speculative demand and good industrial off-take.
Domestic sentiment turned highly bullish after a strong wave of buying swept overseas markets, triggered by worsening geopolitical tension as well as mounting worries over renewed euro zone crisis amid bargain hunting, a bullion trader said.
Standard gold (99.5 purity) hardened by Rs 260 to finish at Rs 28,375 per 10 grams from Wednesday's Rs 28,115.
Pure gold (99.9 purity) also climbed by similar margin to end at Rs 28,525 per 10 grams from Rs 28,265.
Silver (.999 fineness) jumped by hefty Rs 345 to conclude at Rs 44,625 per kg against Rs 44,280 yesterday.
On the global front, the shiny metal zoomed by USD 22.90 to settle at USD 1,308.20 an ounce on the Comex division of the NYMEX late yesterday, which silver gained to USD 20.02 an ounce.