Silver Futures in line with gold was also trading higher at Rs 48,604, up Rs 407.
Internationally, gold prices moved up marginally after fresh worries over the debt crisis in the US. Read more on the US debt crisis here.
Dealers say that gold would continue to exhibit a slightly bullish trend ahead of the festive season in India.
However, the trend is unlikely to remain very buoyant given the government desire to curb gold imports in India.
In fact, the government has already hiked gold import duties several times this year, to prevent gold consumption. The high imports of gold has affected India's current account deficit, which has largely been responsible for the decline of the Indian rupee.
Check live gold rates here