Gold edges lower; traders seek more falls

Gold edged lower on Monday, weighed by a stronger rupee while traders are still waiting for more declines as they gear up to build stocks for the upcoming wedding season.

* The actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was 151 rupees lower at Rs 29,615 per 10 grams at 3:11 p.m.

* The rupee, which traded stronger, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* "A few deals are there since morning as prices are out of comfort level. We have seen need-based activity rather than building up on inventory, looking at the price levels," said a dealer with private bullion importing bank.

* Weddings will start now in India, the world's biggest buyer of gold, and continue till early June. Festivals will also take place during this period.

* India has been trying to curb imports to put a lid on the record-high current account deficit. The federal government raised the import duty on gold, which it called a dead investment, by 50 % to 6 % in January.

* Finance Minister P. Chidambaram suggested last week the government was unlikely to raise the import tax on gold further to avoid gold smuggling.

* May silver was 0.50 % lower at Rs 51,309 per kg.