Elsewhere, silver dropped following hectic speculative selling and lower industrial demand.
Standard gold (99.5 purity) rose by Rs 85 to end at Rs 26,380 per 10 grams from the overnight closing level of Rs 26,295.
Pure gold (99.9 purity) also advanced by a similar margin to settle at Rs 26,530 per 10 grams from Rs 26,445 earlier.
Silver (.999 fineness) slid by Rs 120 to conclude at Rs 34,595 per kg as against Rs 34,715 earlier.
Globally, gold edged lower after posting its biggest one-day gain in two weeks in the previous session, as a tentative rebound in European equities dampened some risk aversion.
Spot gold was down 0.3 percent at USD 1,097.76 an ounce in early trade, while US gold futures for February delivery were down USD 8.00 an ounce at USD 1,098.20.
Silver was down 0.8 percent at USD 14.05.
PTI