Gold importers in India, the world's biggest buyer of bullion, continued to stock up on the yellow metal as prices hovered around their lowest level in a month.
The wedding season is underway in India and will continue until early January. Normally, demand for gold goes up during this period.
The actively traded gold for December delivery on the Multi Commodity Exchange (MCX) was 0.67 percent higher at 31,310 rupees per 10 grams at 2:45 p.m., not far from Friday's low of 31,040 rupees, a level last seen on November 7.
"Deals were there in the morning, like last week, as gold prices and the rupee are in supportive mode," said a dealer with a private bullion importing bank in Mumbai. The yellow metal has shed more than 3 percent since November 26.
The rupee, which traded weaker on Monday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
Global gold posted minor gains on Monday on strength in the euro, but uncertainty about the U.S. budget talks kept bullion's advances in check.
The most-traded silver for December delivery on the MCX was 0.93 percent higher at 61,872 rupees per kg.