Gold sentiment was boosted after European leaders rekindled hopes of Greece bailout.
Weakness in dollar also supported the sentiment. International spot gold was seen trading at $1,729 an ounce.
Reports of Central banks in Brazil, Turkey, Kazakhstan and other countries bought more gold to their reserves in October, as per data from the International Monetary Fund.
Domestically, gold futures were trading steady on the Multi Commodity Exchnage. Gold futures for December contract 2012, on the MCX was trading at Rs 31,822 per 10 grams, higher by Rs 9 or 0.3% at 2.20 pm IST.
Silver futures for December delivery on MCX was trading higher by Rs 83 at Rs 62,130 per kgs.
Delhi spot gold of 99.9% purity was seen flat at Rs 32,450 per 10 grams and gold of 99.5% was seen at Rs 32,250 per 10 grams.