Silver, however, fell by Rs 365 to Rs 36.235 per kg on lack of buying support from industrial units and coin makers.
Traders said besides fresh spell of buying by jewellers and retailers, a firming trend in global markets on lower US equities boosting demand for the precious metal as an alternative investment, buoyed the sentiment.
Gold in New York, which normally set price trend on the domestic front, rose by 0.2 per cent to USD 1,186.20 an ounce and silver by 1.1 per cent to USD 15.76 an ounce in yesterday's trade.
In Delhi, gold of 99.9 and 99.5 per cent purity recovered by Rs 135 each to Rs 27,160 and Rs 26,960 per ten gram respectively. It had lost Rs 175 in last two days.
Sovereign, however, remained flat at Rs 23,700 per piece of eight gram in scattered deals.
On the the other hand, silver ready met with resistance and dropped by Rs 365 to Rs 36,235 per kg and weekly-based delivery by Rs 235 to Rs 36,235 per kg.
Meanwhile, silver coins ruled steady at Rs 60,000 for buying and Rs 61,000 for selling of 100 pieces.