In the global market, the precious metal once again topped the USD 1,100 an ounce mark. Depreciation in rupee, which was trading at over two-week low against the dollar, also supported the upside in gold prices as it would make imports costlier.

Silver also reclaimed the Rs 34,000 per kg mark by rising Rs 250 per kg on increased offtake by industrial units and coin makers.

Bullion traders said sentiment got a boost after gold rallied to a three-week high in global markets following China's devaluation of its currency and rising geopolitical tensions spurred demand for safe-haven assets.

China's central bank lowered the yuan against the dollar by 0.51 percent to 6.5646, the lowest since March 2011. Gold in Singapore, which mostly determine the price trend in the Indian market, was trading 0.8 percent higher at USD 1,102.85 an ounce, its highest since November 6.

In the national capital, gold of 99.9 and 99.5 percent purity zoomed up by Rs 430 each to Rs 26,330 and Rs 26,180 perten gram respectively, a level last seen on December 12.

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