In contrast, silver slumped further to hit a four-year low and closed below the key Rs 37,000 per kilo mark under the impact of massive unwinding from speculators and savvy traders.
Standard gold (99.5 purity) recouped by Rs 105 to settle at Rs 26,065 per 10 grams from overnight closing level of Rs 25,960.
Pure gold (99.9 purity) also recovered by Rs 110 to conclude at Rs 26,215 per 10 grams against Rs 26,105 previously.
Silver (.999 fineness), however declined by Rs 65 to finish at Rs 36,970 per kg as compared to Friday's level of Rs 37,035.
Globally, gold and silver sank to their lowest levels since 2010 on strong dollar momentum amid massive unwinding by speculators and funds spooked by US Fed's decision to end its enormous asset purchase program earlier in the week.
Adding to pressure, strong rally in financial markets worldwide following Bank of Japan decision to expand its stimulus programs also dampened appetite from safe haven investors.
Gold for December delivery plunged to settle at USD 1,171.60 an ounce on the Comex division of the NYMEX late yesterday, while silver December contract slumped to end at USD 16.11 an ounce.