Silver also firmed up further owing to persistent demand from stockists amid industrial support.
On the global front, gold rose back to trade above the psychological USD 1,900 an ounce level on speculation of further quantitative easing measures from the US Federal Reserve to stimulate the economy after weekend's gloomy jobs data, revived recessionary fears.
"The gold prices are skyrocketing mainly due to overseas rally amidst ongoing global economic uncertainties at this moment," a commodity trader said.
Standard gold (99.5 purity) shot up by Rs 345 per 10 grams to end at Rs 28,160 from last Saturday's closing level of Rs 27,815.
Pure gold (99.9 purity) spurted by Rs 355 per 10 grams to close at Rs 28,305 from Rs 27,950. Silver ready (.999 fineness) also hardened by Rs 180 per kilo to finish at Rs 65,395 from Rs 65,215 last weekend.
In Europe, spot gold was bid at USD 1,901.50 an ounce in early trade, while silver was almost steady at USD 43.19 an ounce.