Gold may gain in the event of an impasse between Democrats and Republicans, who fail to agree on a common ground to resolve the impending fiscal cliff in the US.

Worries over the eurozone economy persist, after the region went into a recession, which has helped support gold.

International gold was seen trading at $ 1,713 an ounce.

Gold futures for December contract 2012, on the Multi Commodity Exchange was trading at Rs 31,478 per 10 grams, higher by Rs 22 or 0.07% at 2.40 pm IST.

Silver futures for December delivery on MCX was trading lower by Rs129 at Rs 60,781 per kgs.

Delhi spot gold of 99.9% purity was seen at Rs 32,200 per 10 grams and gold of 99.5% was seen at Rs 32,000 per 10 grams.

Meanwhile, the World Gold Council, which said that the Indian market is showing signs of recovery as demand was up 9% to 223.1 tonnes from 204.8 tonnes in Q3 2011 following increases in both jewellery and investment demand.

GoodReturns.in