Spot gold rose 0.7 percent, to $1,217.81 per ounce by 0303 GMT. It earlier touched a high of $1,219.43, the most since Nov. 22.
Crude oil had traded higher earlier in the session on the back of output cuts by OPEC and other producers.
Total imports of the precious metal in the corresponding period of 2015-16 stood at $26.4 billion.
Gold fell by 1.1 percent on Wednesday, the most since Dec. 15, after Yellen's remarks lifted the dollar by as much as 2 percent, making gold more expensive for holders of other currencies.
Spot gold had risen 0.3 percent to $1,205.93 per ounce by 0324 GMT. On Monday, it marked its highest in more than seven weeks at $1,207.86.
Silver recaptured the Rs 41,000-mark by rising Rs 250 to Rs 41,200 per kg on increased offtake by industrial units and coin makers.
Gold imports were worth $3.80 billion in December last year, the official data released today showed.
"In India, the government's decision to remove large denomination rupee notes took around 86 per cent of India's circulating cash out of its economy," according to the Outlook 2017 - Global Economic Trends and their impact on gold, released by WGC.
The government imposed the anti-dumping duty on products imported from China and European nations for a period not exceeding six months, the circular said.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity climbed by Rs 200 each to Rs 29,450 and Rs 29,300 per 10 grams, a level last seen on November 29.
U.S. crude futures settled up 76 cents to $53.01 a barrel, a gain of 1.5 percent. Brent crude oil settled up 91 cents, or 1.7 percent, at $56.01, off the session high of $56.43 a barrel.
Spot gold was up 0.5 percent at $1,197.64 an ounce by 2:35 p.m. EST (1935 GMT), after touching $1,206.98, its loftiest since Nov. 23. U.S. gold futures settled up 0.3 percent at $1,199.80 per ounce.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity surged by Rs 150 each to Rs 29,250 and Rs 29,100 per ten grams, respectively.
The Iraqi oil ministry said on Tuesday that it had cut its production by 160,000 barrels per day since the beginning of January. By the end of the month, production would be cut by 210,000 bpd, it said.
Traders said that a crude oil and refined product inventory report published by the US Energy Information Administration late on Wednesday had sent mixed messages to the market.
US stocks lost ground in choppy trading, led by drug stocks after US President-elect Donald Trump said pharmaceutical companies were "getting away with murder" by charging high drug prices.
Firm global prices and increased buying activity by jewellers kept the metal prices higher.