Gold rose ahead of Dhanteras, gold futures for December 2012 contract, at MCX, were trading at Rs 31,640 per 10 grams, up by 0.05% at 2.20 pm IST, after opening at Rs 31,601 per 10 grams.
Gold futures for Februvary 2013 contract, at MCX, were trading at Rs 32,051 per 10 grams, up by 0.06%.
Dealers have been building stock of gold ahead of the Diwali and Dhanteras as they expect demand to go up further as and when India's big festivals coming closer, said a dealer.
In early November, gold prices hit a two-month low weighed down by the US jobs data. However, gold recovered after Obama re-election.
According to PTI reports, gold is expected to rise further by 20% to touch Rs 32,500 per 10 gram here on 'Dhanteras', as Indians consider the day as auspicious to buy gold.
Mumbai spot gold of 99.9% purity was seen at Rs 31,975 per 10 grams and gold of 99.5% was seen at Rs 32,120 per 10 grams.