India gold extended gains to a record high on Monday afternoon following firm overseas market and on a weaker rupee, pushing traders to the sidelines in the middle of a seasonally weak demand period, dealers said. * The most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.49% higher at Rs 23,184 per 10 grams at 2:12 pm, after hitting a record high of Rs 23,195. * Overseas spot gold touched a record high, on track for its longest winning run in at least four decades, reflecting persistent worries about the euro zone debt crisis and a growing threat of a US government default. * The rupee edged lower, dragged by the euro's losses against the dollar and weakness in most Asian currencies, but traders said dollar inflows tempered the fall. * The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars. * India, the world's biggest buyer of bullion, is in the middle of the sowing season, when farmers, the traditional buyers of the yellow metal, divert their savings to agricultural equipment and fertilisers. Traders expect physical buying to start late next month for festivals.

Source