REU : India gold rise erodes spot demand at wedding season end
(Reuters) - India's gold futures on Tuesday extended the previous session's gains, tailing a rise in the overseas markets, but physical demand in the domestic market took a backseat as jewellers and retail investors waited for a correction, dealers said.
* At 3:13 p.m., the most-active gold for June delivery on the Multi Commodity Exchange (MCX) was 0.22 percent higher at 22,350 rupees per 10 grams.
* "Jewellers were not buying as wedding season is almost over, while retail investors were waiting for a correction," said a Mumbai-based dealer with a state-run bank dealing in bullion.
* International gold firmed to its highest level in almost two weeks on Tuesday on worries that Europe's debt crisis was spreading out of control, sending euro-denominated bullion to a record above 1,081 euros an ounce.
* Premiums for gold bars were mostly lower in Asia on Tuesday after bullion jumped to two-week highs on fears of worsening debt problems in Europe, while high prices and a volatile rupee curbed demand from main consumer India.
* The Indian rupee, which has a bearing on the landed cost of dollar-quoted gold, was largely steady on Tuesday afternoon.
(Reporting by Rajendra Jadhav; Editing by Harish Nambiar)