(Reuters) - Gold importers in India, the biggest buyer of the metal, moved to the sidelines as the depreciating rupee led to an increase in prices of the metal, which offset falling overseas markets.
The rupee, which touched its lowest level in a week, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
"There is no demand today as the depreciating rupee is hurting," said Haresh Acharya, head of the bullion desk at Ahmedabad-based Parker Bullion, "There will be some seasonal demand going ahead," he added.
The festival season, traditionally a time to buy gold, is now underway in India and will peak with Dhanteras and Diwali next month. Weddings also take place during this period.
The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.07 percent higher at 31,397 rupees per 10 grams, helped by a weaker rupee.
Global gold gave up early gains as shares in Asia slipped following a three-day rally and as investors took a breather ahead of the outcome of a summit on solving the euro zone debt crisis, which could support the euro.
Silver edged lower following copper, another industrial metal.
Silver for December delivery on the MCX was 0.68 percent lower at 60,316 rupees per kg.
