Silver, however, fell by Rs 300 to Rs 55,900 per kg on reduced offtake.
Traders said pick up in demand supported by ongoing marriage season amid firming global trend mainly helped gold prices to gain further ground.
Reduced offtake by industrial units and coin makers at existing higher levels led to fall in silver, they said.
Gold in global markets, which normally set price trend on the domestic front, rose by 7 dollar to 1728.10 dollar an ounce in New York last night.
On the domestic front, gold of 99.9 and 99.5 per cent purity advanced by Rs 60 each to Rs 28,340 and Rs 28,200 per ten grams respectively, after gaining Rs 115 yesterday.
However, sovereign continued to be asked around previous level of Rs 23,400 per piece of eight gram in scattered deals.
Silver ready fell by Rs 300 to Rs 55,900 per kg and weekly-based delivery by Rs 355 to Rs 56,300 per kg.
Silver coins remained steady at Rs 67,000 for buying and Rs 68,000 for selling of 100 pieces.