Snapping its three-day losing streak, gold staged a comeback to close higher by Rs 80 to Rs 27,450 per ten gram in the national capital on Monday amid a firming trend overseas.
Besides, buying at prevailing levels by jewellers also supported the upside.
Silver followed suit and recovered by Rs 250 to Rs 41,500 per kg on increased offtake by industrial units and coin makers.
Traders said sentiments turned better after gold recovered from an eight-month low in global markets on speculation that reduced prices may spur purchases before the Federal Reserve begins a two-day policy meeting.
Gold in Singapore, which normally sets price trend on the domestic front, rose by 0.4 per cent to $1,235.07 an ounce and silver traded a shade higher at $18.64 an ounce.
In Delhi, gold of 99.9 and 99.5 per cent purity was up by Rs 80 each to Rs 27,450 and Rs 27,250 per ten gram, respectively. It had lost Rs 430 in the previous three sessions.
Sovereign, however, held steady at Rs 24,400 per piece of eight gram in limited deals.
In a similar fashion, silver ready recovered by Rs 250 to Rs 41,500 per kg and weekly based delivery by Rs 150 to Rs 41,450 per kg, after losing Rs 920 in last three days.
On the other hand, silver coins continued to be enquired at last level of Rs 71,000 for buying and Rs 72,000 for selling of 100 pieces.