However, demand from local jewellers remained low in view of the ongoing inauspicious fortnight of 'Shradh'.
Silver also rose to Rs 42,000 per kg backed by increased offtake by industrial units and coin makers.
Bullion traders said sentiment got a boost after gold rallied to one-year high in global market as the dollar fell to its weakest level since 2015 in the backdrop of warnings that Hurricane Irma could have devastating impact on the US amid weaker-than-expected jobs data.
Besides, simmering tension between North Korea and the US added to the uptrend.
Also, a firm trend at the futures market supported the price rise, they added.
Globally, gold surged 0.31 per cent to $1,352.80 an ounce, its highest since September 2016 in Singapore on Friday.
Silver too traded higher by 0.19 per cent to $18.13 an ounce.
In the national capital, gold of 99.9 and 99.5 per cent purity zoomed by Rs 990 each to Rs 31,350 and Rs 31,200 per ten gram respectively, a level last seen in November 2016.
The precious metal had lost Rs 240 in last two days.
Sovereign, however, held steady at Rs 24,600 per piece of eight gram.
Tracking gold, silver ready went up by Rs 100 to Rs 42,000 per kg and weekly-based delivery by Rs 580 to Rs 41,770 per kg.
Silver coins however remained unaltered at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)