Gold is trading at Rs 38,775 per 10 gram at the bullion market here on a stronger rupee against the dollar.
Crude oil contracts for most-traded September delivery traded lower by Rs 7, or 0.17 per cent, at Rs 4,000 per barrel.
At the interbank foreign exchange the rupee opened at 71.46, then gained further ground and touched a high of 71.30.
After touching a high of 37,421.13, the 30-share index was trading 129.68 points, or 0.35 per cent, higher at 37,400.50.
The Sensex closed 125 points higher to settle at 37271 while NSE Nifty gained 33 points to close above the 11000-mark.
Forex traders said the uptick in domestic stocks enthused investors, following which the domestic unit gained strength.
Tracking weakness in gold, silver prices also tumbled Rs 1,150 to Rs 48,590 per kilogram at the bullion market here.
The 30-share Sensex settled 125.37 points, or 0.34 per cent, higher at 37,270.82.
Rising brent crude prices and foreign fund inflows weighed on the domestic currency.
After touching a high of 37,145.45, the 30-share index was trading 89.72 points, or 0.24 per cent, higher at 37,235.17.