India Gold Extends Gains for Another Session

India gold extended gains for another session on Wednesday to meet the highest level in about a week, stoked by firm overseas markets, analysts said.

* The most-active gold for February delivery on the Multi Commodity Exchange was 0.32 percent higher at 29,047 rupees per 10 grams, after hitting a high of 29,088 rupees, a level last seen on December 1.

* Investors were also cautious after ratings agency Standard & Poor's fired a second warning shot at the euro zone in 24 hours, threatening to cut the credit rating of its financial rescue fund.

* A stronger rupee kept the upside in prices limited. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

* Silver futures also edged higher following the yellow metal. The most-active silver for March delivery on the MCX was 0.40 percent higher at 57,200 rupees per kg.

* Weakness in demand continued as prices hit the highest level in a week. Weddings are underway in India, the world's biggest buyer of bullion.

* There is a bit of slackness in demand as weddings have decreased, said Harshad Ajmera, proprietor with Kolkata-based JJ Gold House. December is traditionally a high selling season for gold because of weddings.