India gold futures extended losses for another session on Thursday afternoon following a similar trend in overseas market, although a weaker rupee kept the downside limited, analysts said.
* The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 1.10% lower at Rs 27,845 per 10 grams at 3:44 pm.
* Global gold slipped 1% in volatile trade on Thursday after equities rose on optimism over tentative steps by European policy makers to resolve and limit the region's debt crisis.
* The rupee fell for the ninth session on Thursday, a day after touching a near two-year low, as oil refiners stepped up dollar purchases and as concerns over a possible Greek debt default resurfaced to drag Asian peers lower.
* The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
* Physical buying remained slack as the rupee weakened, making the yellow metal expensive for local traders.
* "There has been not much demand since 2-3 days as rupee has weakened. The festival demand is also not in full swing," said a dealer with a state-run bullion importing bank in Mumbai.
* India is the biggest consumer of bullion followed by China. Wedding and festival demand is expected to gain pace and peak in October and November before tapering off in December.
