Gold prices regained the Rs 26,000-mark by soaring Rs 430 -- its biggest one-day surge this year -- to trade at its highest level in over three weeks at Rs 26,330, tracking uptrend in the global bullion market and rise in demand from domestic jewellers.
In the global market, the precious metal once again topped the $1,100-an ounce mark.
Depreciation in rupee, which was trading at over two-week low against the dollar, also supported the upside in gold prices as it would make imports costlier.
Silver also reclaimed the Rs 34,000 per kg mark by rising Rs 250 per kg on increased offtake by industrial units and coin makers.
Bullion traders said sentiment got a boost after gold rallied to a three-week high in global markets following China's devaluation of its currency and rising geopolitical tensions spurred demand for safe-haven assets.
China's central bank lowered the yuan against the dollar by 0.51 per cent to 6.5646, the lowest since March 2011.
Gold in Singapore, which mostly determine the price trend in the Indian market, was trading 0.8 per cent higher at $1,102.85 an ounce, its highest since November 6.
In the national capital, gold of 99.9 and 99.5 per cent purity zoomed up by Rs 430 each to Rs 26,330 and Rs 26,180 per 10 gram respectively, a level last seen on December 12.
The precious metal has now gained Rs 910 in the four straight days, including today's hefty rise of Rs 430.
Sovereign gold followed suit and edged higher by Rs 100 to Rs 22,400 per piece of eight gram.
Following gold rally, silver ready also registered a rise of Rs 250 to Rs 34,000 per kg and weekly-based delivery by Rs 360 to Rs 34,070 per kg.
Silver coins also spurted by Rs 1,000 to Rs 49,000 for buying and Rs 50,000 for selling of 100 pieces.
