Silver also jumped on foot-step with the precious metal.
The recent sharp fall in gold mainly attracted investors and traders for heavy buyout amidst rebound at the overseas.
The metal lost Rs 2,475 in three days from its Tuesday's record level of Rs 28,145 per 10 grams.
At the international level, speculation was ruling high on precious metals ahead of Federal Reserve meet over the stimulus policy later today, resulting in a sharp rally in gold prices.
The metal also got a push from rumours that Germany might be downgraded by the rating agencies on sovereign debt concerns.
Standard gold (99.5 purity) shot up by Rs 1,135 per 10 grams to end at Rs 26,805 from Thursday''s closing level of Rs 25,670.
Pure gold (99.9 purity) also zoomed by a similar margin of Rs 1,135 per 10 grams to finish at Rs 26,930 from overnight closing level of Rs 25,795.
Silver ready (.999 fineness) galloped by Rs 2,940 per kilo to conclude at Rs 63,485 from Rs 60,545 previously.
In Europe, spot gold was bid at USD 1,786.86 an ounce in early trade and silver also quoted at USD 40.80 an ounce.