Silver also rose by Rs 650 to Rs 57,350 per kg on rising demand among industrial units.
Market sentiments remained bullish as traders continued to purchase for the ongoing marriage season and investor buying as weakening equity and other assets forced them to park their funds in bullion as a safe haven.
The upsurge further supported as gold rose by USD 41.60 to USD 1,795.40 an ounce in global markets, after soaring more than 2 per cent in the previous session on heavy buying as protection of wealth, as Italy took centre stage in the eurozone debt crisis.
On the domestic front, gold of 99.9 and 99.5 per cent purity surged by Rs 400 each to Rs 28,940 and Rs 28,800 per 10 grams, respectively. Sovereigns rose by Rs 500 to Rs 23,000 per piece of eight grams.
Silver ready shot up by Rs 650 to Rs 57,350 per kg and weekly-based delivery by Rs 980 to Rs 57,280 per kg. Silver coins rose by Rs 65,500 for buying and Rs 66,500 for selling of 100 pieces.