Silver, however, declined moderately in a thin trade amidst speculative selling as well as reduced industrial buying.
Standard gold (99.5 purity) surged by Rs 185 per 10 grams to close at Rs 26,180 from Friday's closing level of Rs 25,995.
Pure gold (99.9 purity) rallied by Rs 190 per 10 grams to finish at Rs 26,310 from overnight close of Rs 26,120.
However, silver ready (.999 fineness) declined by Rs 155 per kg to conclude at Rs 51,725 from Rs 51,880 yesterday.
In overseas markets, gold gained, attracting low level buying over its safe heaven tag on a subdued weekend trade.
In New York, gold for December delivery rose by USD 5 to USD 1,622.30 an ounce on the COMEX division of the NYMEX. December silver was down by 44 cents to USD 30.08 an ounce.