Gold futures for February 2013 contract, at MCX, was trading at Rs 31,128 per 10 grams, higher by 0.78% or Rs 240 after opening at Rs. 30,870 per ten grams.

Silver Futures were seen trading higher by Rs 445 at Rs 58,363 per kgs on the MCX.

Meanwhile, the government is considering steps to reduce gold import by making it more expensive, Finance Minister P. Chidambaram said on Wednesday.

"Demand for gold must be moderated... We may be left with no choice but to make it more expensive to import gold. The matter is under government consideration," he told reporters in New Delhi.

Gold surged after the fiscal cliff was averted with the House of Representatives approving a Senate passed Bill today. International spot gold rose $7.01 an ounce to $1,681 an ounce after slipping to low of $1.670 an ounce.

Now, the United States will not face tax hikes and spending cuts as which had been due to come into force on Tuesday.

However, the rise in gold may be curbed if there is appreciation in Indian rupee against dollar.

GoodReturns.in