On Thursday, gold had closed at Rs 38,214 per 10 gram.
“Spot gold prices for 24 karat gold in Delhi were traded higher by Rs 181 reflecting overnight gains in the global prices,” HDFC Securities Senior Analyst (Commodities) Tapan Patel said.
Silver prices also increased Rs 270 to Rs 47,900 per kg, from Rs 47,630 per kg at the close of the previous trade.
In the international market, gold was trading higher at USD 1,513 per ounce and silver at USD 18.13 an ounce.
Gold prices traded higher on worries over the US-China trade deal. The trade deal uncertainty made the yellow metal a safe haven for the investors.
The international gold prices were up as the trade deal uncertainty between the two major economies scared global investors, Patel said.
Bullion prices gained momentum after China raised doubts over a long-term trade deal with the US which triggered selling in riskier assets, he added.