Silver also recovered by Rs 350 to Rs 35,500 per kg on increased offtake by industrial units and coin makers.
Bullion traders said besides ongoing wedding season demand, a firm global trend as the weakening in dollar revived the appeal of the metal as an alternative investment, mainly boosted the sentiment.
Gold in New York, which normally sets price trend on the domestic front, gained 0.3 per cent to USD 1,163 an ounce in yesterday's trade.
In Delhi, gold of 99.9 and 99.5 per cent purity shot up by Rs 400 each to Rs 26,450 and Rs 26,250 per 10 grams, respectively.
It had lost Rs 400 in the past two days. Sovereign, however, held steady at Rs 23,700 per piece of eight grams.
In a similar fashion, silver ready recovered by Rs 350 to Rs 35,500 per kg and weekly-based delivery by Rs 110 to Rs 34,600 per kg.
On the other hand, silver coins ruled flat at Rs 58,000 for buying and Rs 59,000 for selling of 100 pieces.