MUMBAI (Reuters) - Gold snapped a three-day gaining streak on Monday following similar trend globally. A strong rupee also made the dollar-quoted yellow metal cheaper, triggering a slight pick-up in physical demand ahead of key festivals.
* At 1:14 p.m., the most-active gold for October delivery on the Multi Commodity Exchange (MCX) was trading 1.95 percent lower at 27,099 rupees per 10 grams
* Global spot gold fell more than 1 percent, reversing a rally of 3.2 percent in the previous session, as investors, faced with uncertainties over the U.S. Federal Reserve’s stimulus plans, decided to take some money off the table.
* The rupee strengthened, supported by a sharp rise in local shares, Asian peers and gains in the euro, with corporate dollar sales, possibly from a large domestic engineering conglomerate, also aiding.
* The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
* A price dip attracted physical buying from traders, who were on the sidelines.
* “Demand has improved in the last few days,” said a dealer with a private-run bullion importing bank in Mumbai, adding premiums are steady at $1.1/1.4 over London prices.
* India’s wedding and festival season demand will gain pace and peak in October before tapering off in December.
Reporting by Siddesh Mayenkar; Editing by Rajesh Pandathil