Silver also rebounded by Rs 600 to Rs 34,800 per kg on increased offtake by industrial users and coin makers.
Traders said emergence of buying by jewellers and retailers, triggered by festive season and a better trend in global market, mainly led to recovery in prices of both the precious metals.
Globally, gold rose 0.7 per cent to $1,132.55 an ounce and silver climbed 0.5 per cent to $14.56 an ounce in Singapore.
In New Delhi, gold of 99.9 and 99.5 per cent purity were up by Rs 50 each to Rs 26,700 and Rs 26,550 per ten grams, respectively. The precious metals had lost Rs 925 in the previous three sessions.
Sovereign, continued to trade steady at Rs 22,500 per piece of eight grams.
Tracking gold, silver ready recorded a handsome gain of Rs 600 to Rs 34,800 and weekly-based delivery by Rs 780 to Rs 34,295 per kg.
On the other hand, silver coins held steady at Rs 50,000 for buying and Rs 51,000 for selling of 100 pieces.
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