The rupee, which dropped by over 1 percent to 66.50 (intra-day) against the dollar, making imports costlier, too supported the upside in gold prices.
Tracking gold, silver also recovered by Rs 110 to Rs 35,410 per kg on increased offtake by industrial units and coin makers.
Bullion merchants said trading on Dhanteras, which is considered as an auspicious day to purchase precious metals, glittered on the back of token buying activity to mark the occasion amid a firm trend in global market supported consumers' buying spirit.
Globally, gold climbed 0.3 percent to USD 1,093.30 an ounce in Singapore.
"An improvement in gold demand from retailers on the auspicious day of Dhanteras, mainly helped gold to stage a comeback," said Rakesh Anand a Delhi-based jeweller.
In the national capital, gold of 99.9 and 99.5 percent purity climbed by Rs 120 to Rs 26,230 and Rs 26,080 per 10 grams, respectively. It had lost Rs 220 in Saturday's trade.
Sovereign, moved up by Rs 50 to Rs 22,300 per piece of eight grams.
In futures trading, gold for delivery in far-month February was trading Rs 171 or 0.66 percent higher at Rs 25,865 at the Multi Commodity Exchange (MCX).


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