UPDATE 1-India gold firm on weak rupee; demand down

(Updates to trends in the physical market)

* Spot gold down at $861.50 an ounce XAU=

* London Brent crude down at $123.30 a barrel LCOc1

* Rupee weaker at 42.62 per dollar INR=IN

* U.S. CPI at 6 p.m. <MI/DIARY>

MUMBAI, May 14 (Reuters) - India's gold prices stayed firm on Wednesday even though overseas markets eased, as a weaker rupee supported the metal, making buyers wait for lower levels at the end of the busy season, dealers said.

Demand is "very slow because of the rupee, even though gold price (in dollars) is still in the buying range," said a dealer in a large private bank.

Gold gets expensive in India if the rupee weakens against the dollar as most of the metal is imported and priced in the U.S. currency. On Wednesday, the rupee fell to a 13-month low against the dollar.

Retail sales of gold are now on a decline with the Akshaya Tritiya festival over last week and the number of weddings slowing.