Mumbai The traditional way of buying is back in vogue, even at the rarefied heights where the yellow metal finds itself in these days. India gold extended losses for a second day to trade near its two-month low on Tuesday, spurring physical buying as traders braced for a second round of festivals from August, but a weak rupee weighed on sentiment. This is the last week of July before festivals in August, so physical traders are taking every opportunity to enter, said Pinakin Vyas, assistant vice-president, treasury, with IndusInd Bank, a gold importer. Gold futures on the Multi Commodity Exchange (MCX) was trading 0.16 percent lower at 18,228 rupees at 1:20 p.m., after hitting a low of 18,210 rupees, nearing the level last seen on May 25. I priced-in for a sizeable quantity of gold from yesterday evening below $1,190 levels, said Vyas. Rupee is not giving too much comfort to the market, said a dealer with a state-run, bullion-dealing bank. The Indian rupee fell to its lowest level in a month and half on Tuesday, weighed down by defence-related import payments and demand for dollars from some companies. [INR/] A weaker rupee makes the dollar-quoted asset expensive. India, which accounts for more than 20 percent of global demand, will celebrate the Hindu festival of Raksha Bandhan on Aug. 24, and Janmasthami and Ganesh Chaturthi in September. The world's largest consumer of bullion may import 500-550 tonnes of gold in 2010, up from 480-490 tonnes a year earlier, the head of a trade body said on Thursday.

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