Gold sentiment was boosted after the euro rose to a month high against the dollar.
The metal was also supported by the fall in the US dollar due to its inverse relationship with the greenback.
Gold futures for December contract was seen trading at Rs 31,103 per 10 grams, higher by 0.20% at 2.00 pm IST.
Silver futures for December contract was trading higher by Rs 224 to Rs 62,255 on the MCX.
International gold rose and was seen trading at $1,750 an ounce. Investors sentiments improved on eurozone debt crises after Moody's affirmed Spain's rating.
Gold sentiment may be dampened due appreciation in the rupee. The rupee is an important variable along with international gold prices in determining the domestic prices of gold.