December 9, 2009 / 10:00 AM / 9 years ago

UPDATE 1-India gold extends losses, triggers buying

(Updates to trends in the physical market)

* Spot gold up at $1,137.40 an ounce XAU=

* London Brent crude up at $75.83 a barrel LCOc1

* Rupee strong at 46.64 per dollar INR=IN

MUMBAI, Dec 9 (Reuters) - India’s gold physical offtake picked up on Wednesday as prices fell for a fifth day in a row, when a strong dollar overseas weighed on the yellow metal, dealers said.

“Demand has definitely picked up now, but traders are still doing small ticket sizes,” said a dealer with a state-run bullion dealing bank in Mumbai.

The most-traded February contract MAUc1 was trading 1.24 percent lower at 17,228 rupees per 10 grams at 3:20 p.m., after losing more than 4 percent in the previous four sessions.

The euro fell to a one-month low against the dollar on Wednesday as investors unwound positions in riskier assets ahead of the year-end, prompted in part by rising debt woes for Greece and Dubai.[USD/]

A strong dollar dims the yellow metal’s appeal as an alternative investment.

Dealers said a slight price correction could spur additional wedding demand.

“I have orders all the way.... some below $1,120 (an ounce) and bulk below $1,100,” said another dealer with a state-run bank.

Following were the prices being quoted by HDFC Bank in rupees in the spot market at 1:15 p.m. INBULL03:

Wednesday Tuesday

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Gold .999/10 grams 17,350 17,740

Silver .999/kg 28,500 29,410

Following were prices in rupees on the Multi Commodity Exchange of India Ltd. at 3:20 p.m. <0#MAU:>:

Contract Current price Net change

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Feb gold 17,231 -214

Mar silver 27,781 -271

Reporting by Siddesh Mayenkar; Editing by Sunil Nair

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