Buying activity in the precious metals picked up after gold gained in London as concerns about deepening European debt crisis spurred demand for the metal as a protection of wealth.
Gold in global markets, which normally sets the price trend on the domestic front, rose by USD 11.60 to USD 1,823.47 an ounce in London.
Traders said sustained buying by stockists for the coming marriage season and reports of a firm trend in overseas markets mainly pushed up both gold and silver prices.
Investors shifting their funds from weak equities to rising bullion further supported the uptrend, they added.
On the domestic front, gold of 99.9 and 99.5 per cent purity zoomed up by Rs 450 each to Rs 28,610 and Rs 28,460 per 10 grams, respectively.
The metal had gained Rs 420 in the previous session. Sovereign followed suit and rose by Rs 100 to Rs 22,800 per piece of eight grams.
In a similar fashion, silver ready spurted by Rs 600 to Rs 65,000 per kg and weekly-based delivery by Rs 645 to Rs 65,095 per kg, respectively on increased buying by industrial units. The metal had surged Rs 1,100 on Saturday.
Silver coins also rose by Rs 1,000 to Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.