Silver followed suit and advanced by Rs 450 to Rs 39,250 per kg on increased offtake by industrial units and coin makers.
Sentiments remained firm in precious metals on sustained buying by jewellers and retailers to meet ongoing festive season demand .
This was besides a firming trend overseas where gold climbed to nearly four-week high as dollar weakened on signs that US Federal Reserve may push back interest rate hike, boosting demand for a safe-haven, traders said.
Gold in Singapore, which normally determine price trend on the domestic front, climbed by 1.2 percent to USD 1,237.86 an ounce, the highest since September 17 and silver by 0.8 percent to USD 17.54 an ounce.
In Delhi, gold of 99.9 and 99.5 percent purity shot up by Rs 200 each to Rs 27,600 and Rs 27,400 per ten gram respectively, a level last seen on September 9. Sovereign, however, held steady at Rs 24,200 per piece of eight gram.
In a similar fashion, silver ready spurted by Rs 450 to Rs 39,250 per kg and weekly-based delivery by Rs 685 to Rs 38,935 per kg.
Meanwhile, silver coins continued to be traded at last level of Rs 68,000 for buying and Rs 69,000 for selling of 100 pieces.