MUMBAI, Sept 17 (Reuters) - Gold demand in India, the world's biggest consumer, was subdued on Monday as buyers waited for the rupee to stabilise before making purchases for the festive season. * The most-traded gold contract, for October delivery , was down 0.13 percent at 31,840 rupees per 10 grams by 0944 GMT, after hitting a record high of 32,421 rupees late on Thursday. * "The sharp rise in the rupee was a surprise for buyers. They bought gold aggressively on Friday, but are now waiting for the rupee to stabilize," said a Mumbai-based dealer with a private bank. * The rupee rose to a four-month high in early trade on Monday in hopes of major foreign inflows after the federal government announced the opening up of the aviation and multi-brand retail sectors to overseas direct investment. * A strong rupee makes imports of gold cheaper. * "Buyers are not expecting prices to move higher in the world market. The market has factored in the impact of the Federal Reserve's stimulus programme," the dealer said. * In the international market, spot gold eased to $1,767.59 an ounce. * India celebrates the Ganesh festival this week, which will be followed by Dussehra in October and Diwali in November. Buying gold during festivals is considered auspicious. * Following were the prices in rupees at 1:15 p.m., quoted by HDFC Bank in the spot market : Monday Friday =============================================== Gold .999/10 grams 32,076 32,485 Silver .999/kg 65,300 66,020 At 0944 GMT, following were the prices in rupees on the Multi Commodity Exchange of India Ltd <0#MAU:>: Contract Current price Net change =================================================== Oct gold 31,840 -40 Dec silver 64,078 -206

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