MUMBAI:Gold futures fell on Monday afternoon weighed by weak overseas markets and a strongerrupee back home, though physical buyers awaited bigger falls before gearing up for festivals slated later this month, dealers said. The most-traded August gold on the Multi Commodity Exchange (MCX) was trading 0.53 percent lower at 23,044 rupees per 10 grams, after hitting a low of 22,965 rupees earlier. "There were a couple of stray trades despite a stronger rupee. Still people are waiting for the U.S. debt plan and if it gets through, gold may face some pressure," said Pinakin Vyas, assistant vice-president withIndusInd Bank. "People are still deciding to make inventory plans for festival season." Overseas gold fell more than 1 percent on Monday after U.S. President Barack Obama said lawmakers had reached a deal to cut the country's deficit, which, if approved, would remove the threat of a default on debt that has driven bullion to a record high. The Indian rupee was strong in afternoon trade as upbeat local shares and the central bank's hefty rate increase last week improved outlook on dollar inflows. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars. Retail gold demand is expected to gain pace in August, when the festival and wedding seasons start in the world's biggest consumer of bullion.

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