MUMBAI (Reuters) - Gold prices in India are expected to extend their fall past a two-week low hit on Tuesday, under pressure from the dollars gains against the euro, although the governments decision to remove excise duty on jewellery is seen limiting the losses. The most-traded gold for June delivery extended losses for the fourth straight session on Tuesday. The metal traded at 28,830 rupees per 10 grams, down 0.38 percent, after hitting a low of 28,802 rupees, a level last seen on April 25. 'News flows from euro zone could strengthen the dollar and weaken gold prices,' said Gnanasekar Thiagarajan, director with Commtrendz Research. Thiagarajan advised selling gold on rallies to 28,950 rupees for a target of 28,500 rupees. The dollar, which rose on Tuesday, and gold often move in opposite directions as the two compete for funds globally. On Monday, the federal government removed the excise duty on branded and unbranded jewellery, a move that is expected to trigger buying from traders as they gear up for peak wedding season. UBS said the removal of excise duty is a significant development and encouraged re-stocking. '...with the markets acutely focused on the softer Indian demand in recent months, yesterdays developments, which ease one element of the recent sluggishness, are certainly gold positive,' said analyst Edel Tully in a note to clients. Jewellers in India, which imported more than 950 tonnes last year - a new record - went on strike to protest against the duty and ended their action only after government reassurances that it would consider scrapping the tax. A Reuters poll in March had estimated gold imports in India, the worlds biggest buyer of bullion, to fall to 655 tonnes in 2012. Gold demand in India, China http://graphics.thomsonreuters.com/12/02/GLB_GLDDMD_CT0212.gif (Reporting by Siddesh Mayenkar; Editing by Aradhana Aravindan)
