Besides, the decline in equity markets also aided the rally in the precious metal as investors moved towards safe-haven assets such as gold, they added.
Gold prices traded weak with international spot gold prices but continue to hover around $1,500 an ounce.
In New York, spot gold was trading lower at $1,499.20 an ounce and silver was down at $17.08 an ounce.
"Globally, gold prices are awaiting key events of the week including tonight's (Wednesday's) FOMC minutes, which will set the tone for future rate cut expectations. Gold prices may keep the steady trade ahead of Jackson Hole meeting where US Federal Reserve Chair Jerome Powell's speech will be crucial to anticipate risk pertaining to the markets," said HDFC Securities Senior Analyst (Commodities) Tapan Patel.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity rose Rs 50 each to Rs 38,820 and Rs 38,650 per 10 gram, respectively
Sovereign gold advanced by Rs 200 at 28,800 per eight grams.
Meanwhile, silver ready surged Rs 1,140 to 45,040 per kg, while weekly-based delivery gained Rs 210 to Rs 43,632 per kg.
Silver coins were in good demand and traded higher by Rs 2,000 to Rs 91,000 for buying and Rs 92,000 for selling of 100 coins.