Demand for gold in India, one of the world's leading consumers, marginally improved on Tuesday after prices fell to their lowest level in a week on a strong rupee.
* The most-active gold contract for August delivery on the Multi Commodity Exchange (MCX) was down 0.32% at Rs 29,562 per 10 grams at 4:55 p.m.
* The rupee, which rose nearly 1% on Tuesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* "There is a slight improvement in demand, but buyers are cautious," said a Mumbai-based dealer with a private bank dealing in bullion.
"Jewellers are cautious. They are monitoring the monsoon's progress. Poor rainfall can affect farmers' earnings. It can hurt demand."
* Good monsoon rains are vital to incomes in rural areas, which contribute to 60% of gold imports, dealers said. The country has so far received 25% lower rains than normal since the beginning of the monsoon season on June 1.
* International spot gold rose on Tuesday, taking advantage of a drop in the U.S. dollar after top Federal Reserve policymakers warned about the fragility of the economy.
* India's gold imports could pick up in the second half of 2012 if record prices ease but annual volumes will still fall about 30% after a tax increase, which could crimp demand until 2014, the head of Mumbai's gold trade association said in June.
