Silver also strengthened by Rs 400 to Rs 36,100 per kg on the back of increased offtake by industrial units.
Bullion traders said sentiment remained upbeat after precious metals rose in global markets as China's move to devalue its currency spurred demand for safe-haven assets and sustained buying by jewellers to meet seasonal demand.
Furthermore, depreciating rupee which breached the 65-mark for the first time since September 2013 against the American currency to 65.17 (intra-day) gave push to rising gold prices as it would make imports costlier, they said.
Gold in New York, which normally determines price trend on the domestic front, shot up by 1.52 per cent to USD 1125.50 an ounce and silver by 1.17 per cent to USD 15.54 dollar an ounce in yesterday's trade.
In the national capital, gold of 99.9 and 99.5 per cent purity surged by another Rs 190 each to Rs 26,190 and Rs 26,040 per ten gram respectively.
It had gained Rs 1,020 in the previous five trading sessions. Sovereign, however, held steady at Rs 22,400 per piece of eight gram in scattered deals.
On the other hand, silver coins met with resistance at prevailing levels and plunged by Rs 1,000 to Rs 50,000 for buying and Rs 51,000 for selling of 100 pieces.
New gold ETF norms may make investment risky
Booming business: How gold is SMUGGLED into India
Yuan effect: Rupee may weaken further, says Citi
The 24 contest: Win COOL Prizes!
'Nehru was as much to blame as Jinnah for Partition'