Gold importers in India, the world's biggest buyer of the metal, continued picking up bargains for weddings as a stronger rupee weighed on the yellow metal, extending losses to the lowest level in nearly two weeks.
The wedding season will continue till early January and gold is an
important gift item at marriages.
The actively traded gold for February delivery on the Multi Commodity Exchange was 0.52% lower at Rs. 30,894 per 10 grams at 0909 GMT, after hitting a low of Rs. 30,890, its lowest since December 6.
"The market is very active since yesterday evening when gold prices started dropping," said a dealer with a bullion importing private bank in Mumbai on Wednesday, adding, "Today is a busy day for us."
The rupee, which inched higher on Wednesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
In the overseas market, however, gold bounced back on a weaker dollar, but prices were still in sight of an almost four-month low.
Silver also fell to its lowest in two weeks following the yellow metal.
March silver also extended losses to trade 0.31% lower at 60,500 rupees per kg, after hitting a low of 60,367 rupees, a level last seen on December 5.