India Gold Price Drop Fails to Attract Buyers

Gold futures in India, the world's biggest consumer, eased Thursday afternoon due to a rebound in the rupee, though demand in local spot market remained weak as buyers were seeking further correction, dealers said.

* The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.57 percent lower at 28,615 rupees per 10 grams at 3:41 p.m.

The contract earlier this month hit a record high of 29,212 rupees.

* The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, gained in afternoon trade Thursday on account of dollar selling from corporates and hopes that steps announced by the central bank could boost dollar inflows.

* Traders think prices are too high. They are waiting for correction. Demand from jewelers was also weak, said a Mumbai-based dealer with a private bank dealing in bullion.

* The wedding season - traditionally a moment for splurging on gold -- is currently underway in India, but so far it has failed to bolster demand substantially.

* India's gold demand, which recorded a fall of 20 percent in the September quarter, could rise in the last quarter and surpass the 1,000 tonnes demand mark in 2011, according to the World Gold Council figures.