However, in the overseas market, gold slipped for a second session as muted physical demand weighed on prices.
Investors are closely watching the U.S. Federal Reserve's two-day policy meeting that begins later in the day as a string of healthy U.S. data has increased speculation the bank could scale back its bond-buying programme, hurting gold's appeal as a hedge against inflation. Silver for July delivery on the MCX was 0.72% higher at 43,912 Rs./kg.
In the physical market, demand remained weak after the government raised import duty by a third to 8 percent, following a ban on consignment imports by the central bank.
The country's gold imports fell from an average of $135 million in the first half of May to $36 million in the second half, Finance Minister P. Chidambaram said.