Elsewhere, silver also rebounded owing to fresh speculative buying amidst good industrial offtake.
Standard gold (99.5 purity) advanced by Rs 340 to end at Rs 29,025 per 10 grams from Wednesday’s level of Rs 28,685.
Pure gold (99.9 purity) also rose by a similar margin to conclude at Rs 29,175 per 10 grams from Rs 28,835.
Silver (.999 fineness) jumped by Rs 625 per kg to finish at Rs 37,950 compared to Rs 37,325 previously.
Globally, gold climbed, extending a 2.5 percent rally made in the previous session after the Federal Reserve cut the number of interest rate rises it forecasts for this year, sending the dollar sharply lower.
The US central bank held interest rates steady and indicated that it would tighten policy this year.
Spot gold was up 0.6 percent at USD 1,269.31 an ounce in early European trade.
Among other precious metals, silver was up 0.7 percent at USD 15.71 an ounce.
PTI