Silver, however, met with resistance and traded lower by Rs 200 to Rs 37,400 per kg.
Traders said continued buying by jewellers, driven by ongoing marriage season and a firming global trend mainly boosted the sentiment.
Gold in London, which normally sets price trend on the domestic front, rose by 0.17 per cent to $1,206.60 an ounce and silver by 0.57 per cent to $16.63 an ounce.
Besides, deprecating rupee against the dollar that made the imports costlier and shifting of funds from weakening equity also supported the uptrend, they added.
In the national capital, gold of 99.9 and 99.5 per cent purity gained Rs 55 each to Rs 27,475 and Rs 27,325 per 10 gram, respectively.
It had gained Rs 370 in the previous two sessions.
On the other hand, silver ready met with resistance at existing higher levels and declined by Rs 200 to Rs 37,400 per kg, while weekly-based delivery moved up by Rs 170 Rs 37,460 per kg on speculators' buying.
Meanwhile, silver coins were unaltered at Rs 56,000 for buying and Rs 57,000 for selling of 100 pieces.