MUMBAI, Sept 28 (Reuters) - Gold importers in India, the world's biggest consumer, stepped up purchases in small quantities ahead of major festivals as prices hovered near their lowest in three weeks, weighed by a stronger rupee. * At 0842 GMT, the most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 0.36 percent down at 31,236 rupees per 10 grams, after hitting a low of 31,218 rupees, nearing a level last seen in early September. * Gold prices have fallen due to the sharp appreciation in the rupee, which was near a five-month high. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. * "There has been some demand over the past few days as the rupee is very much in favour," said a dealer with a private bullion-importing bank in Mumbai. "Demand will materialise further, if the rupee strengthens more." * The festival and wedding season is underway in India, and will continue till November, before tapering off in December. * Gold imports to India are likely to fall by as much as 26 percent, or by 200 to 250 tonnes, in 2012 as record high prices hit consumer budgets. * Silver traded flat as pressure from a stronger rupee was offset by slightly higher overseas markets. * Silver for December delivery on the MCX was 0.11 percent lower at 62,988 rupees per kg. * Following were the prices of gold and silver in rupees at 1:15 p.m., quoted by HDFC Bank in the spot market : Friday Thursday ============================================= Gold .999/10 grams 31,447 31,418 Silver .999/kg 64,256 32,500 At 2:18 p.m., following were the prices in rupees on the Multi Commodity Exchange of India Ltd <0#MAU:>: Contract Current price Net change ============================================= Oct gold 31,246 -103 Dec silver 62,939 -116

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