Silver also recovered by Rs 225 to Rs 38,850 per kg on pick up in demand from industrial units and coin makers.
Traders said besides festive season demand, a firming trend overseas as the dollar pared gains, reviving demand for precious metals, mainly led to the recovery in precious metals.
Gold in London, which normally sets price trend on the domestic front, rose 0.3 percent to USD 1,241.36 an ounce.
In Delhi, gold of 99.9 and 99.5 per cent purity rose by Rs 75 each to Rs 27,775 and Rs 27,575 per 10 grams, respectively. It had lost Rs 160 in Saturday's trade.
Sovereign, however, continued to be asked at last level of Rs 24,300 per piece of eight grams in limited deals.
In a similar fashion, silver ready recovered Rs 225 to Rs 38,850 per kg and weekly-based delivery by Rs 250 to Rs 38,650 per kg.
Silver coins also spurted by Rs 1,000 to Rs 69,000 for buying and Rs 70,000 for selling of 100 pieces on upsurge in demand ahead of Diwali.