Gold prices hit one-week high

Gold bars are displayed at a gold jewellery shop in Chandigarh May 8, 2012.

MUMBAI (Reuters) - Gold wholesalers and importers in India retreated on Tuesday despite the ongoing wedding season as the yellow metal gained for a third session to its highest in a week in line with global markets.

The wedding season in India, the world's biggest buyer of the metal, will continue until early January and gold is an important gift item at marriages.

"Buying is a little slow as people are waiting for a price correction," said Ketan Shroff, director, Penta Gold, a wholesaler in Mumbai.

The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was up 0.34 percent at 31,437 rupees per 10 grams. It hit 31,467 rupees earlier, its highest since December 12. The contract gained 0.5 percent in the previous two sessions.

In the global markets, gold edged higher, hovering around a key resistance at $1,700 an ounce on Tuesday, as investors watched U.S. lawmakers inch towards a deal to avert a fiscal disaster.

Investors also awaited direction from a flat rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Silver also extended gains on Tuesday, trading 0.78 percent higher at 61,965 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Prateek Chatterjee)