Domestic equities fell on the bourses on profit-booking and concerns over rising crude prices.
Weak rupee is also boosting demand for gold. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
The benchmark Sensex saw a steep fall in today's trade and was at 17471.93 down by 451.64 points while the NSE Nifty 5281.75 down by 147.55.
At 03.00 pm IST, the gold for April delivery contract was trading at Rs 28,683 up Rs 19 per 10 grams.
While the metal for June contract was up Rs 20 and was seen trading at Rs 29,045 per 10 grams.
However, silver for march delivery rose by Rs 173 at Rs 58,608 and touched intraday high of Rs 58,4770.
Spot gold on MCX was trading up at Rs 28,505 per 10 grams and Silver was up and seen trading at Rs 58,250 per kgs.
Domestic bullion prices 99.9 and 99.5 per cent were at Rs 28,608 and Rs 28,745 per 10 grams, respectively.
International spot gold seen steady at US$ 1,768 a troy ounce.