MUMBAI: India gold futures fell by about 1.5 percent on Monday afternoon to hit their lowest level in a week, following a weak trend in the overseas markets and a stronger rupee at home.
* The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 1.27 percent lower at 27,208 rupees per 10 grams, after hitting a low of 27,152 rupees, a level last seen on Oct. 25.
* Spot gold prices dropped nearly 2 percent, after Japan's intervention in the currency market triggered a spike in the dollar, spooking precious metals investors and setting bullion up for its biggest one-day drop in four weeks.
* The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
* The Indian rupee recouped all early losses aided by improvement in the euro and some dollar inflows, although volatile local shares limited the recovery.
* Physical traders booked the yellow metal to stock for the wedding season, which will continue till December. India is the biggest buyer of bullion.
* "In India, demand is pretty much there. $1700-$1710 is well supported" and any breach of the support level will be a buying opportunity, s aid a dealer with a private bullion importing bank in Mumbai.
