March 14, 2012 / 9:18 AM / 5 years ago

India gold price fall triggers physical buying

MUMBAI, March 14 (Reuters) - India gold fell about a percent on Wednesday afternoon, extending losses for a fourth straight session, spurring deals from physical buyers as the peak wedding season neared, dealers said.

* The most-active gold for April delivery on the Multi Commodity Exchange (MCX) fell 0.9 percent to 27,581 rupees. The contract shed 0.58 percent in the previous three sessions.

* Currently wedding season is underway in India, the world's biggest buyer of bullion. Festivals will also take place until May.

* "Deals are happening as prices have come down to 27,500 rupees ... all are waiting for the budget on Friday," said Mayank Khemka, managing director, Khemka International in Delhi.

* Overseas gold fell for a third day as weaker equity markets and stronger dollar weighed on sentiment.

* Silver also fell following gold. Silver for May delivery on the MCX was 0.69 percent lower at 57,855 rupees per kg.

At 1:15 p.m, the following were the prices in rupees being quoted by the HDFC Bank in the spot market :

Wednesday Tuesday

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Gold .999/10 grams 27,625 27,918

Silver .999/kg 56,860 57,023

At 2:43 p.m., following were the prices in rupees on the Multi Commodity Exchange of India Ltd. :

Contract Current price Net change

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Apr gold 27,630 -202

May silver 57,926 -333 (Reporting by Siddesh Mayenkar; Editing by Rajesh Pandathil)

0 : 0
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