MUMBAI, July 16 (Reuters) - Indian gold futures extended losses on Monday as the rupee hit its highest level in over a week, but price falls were not enough for jewellers, who were waiting to stock-up for upcoming festivals.
* At 1:06 pm, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.21 percent lower at 29,207 rupees per 10 grams.
* Traders are also eyeing the progress of the monsoon rains, which have been scant so far. Rural areas, which contribute to about 60 percent of gold demand, depend on the monsoon for better farm productivity, yields and profits.
* “We used to get 50-70 customers at our shops, we don’t even have five coming now... they all want stable prices,” said Kumar Jain, vice-president of the Mumbai Jewellers Association.
* The festival season in India starts next month and continues till November.
* Gold imports could pick up in the second half of the year if prices ease, but annual volumes will still fall 30 percent after a tax increase that could crimp demand.
* Silver edged lower, in tandem with the yellow metal.
* Silver for September delivery on the MCX was 0.32 percent lower at 52,599 rupees per kg.
* At 1:15 p.m., following were the prices in rupees quoted by HDFC Bank in the spot market :
Gold .999/10 grams 29,355 29,445
Silver .999/kg 53,210 53,750
At 12:58 p.m., following were the prices in rupees on the Multi Commodity Exchange of India Ltd <0#MAU:>:
Contract Current price Net change
Aug gold 29,207 -61
July silver 52,596 -171 (Reporting by Siddesh Mayenkar; Editing by Prateek Chatterjee)