Gold falls to 5-week low, attracts importers

Gold prices in India fell on Thursday, extending losses for a fifth session in a row to its lowest level in nearly five weeks weighed by a stronger rupee, attracting importers seeking to stock the yellow metal for festivals.

The most-active gold for December delivery on the Multi Commodity Exchange (MCX) struck an intra-day low of Rs 31,212 per 10 grams, a level last seen on August 31, before trading 0.25% lower at Rs 31,234 at 0800 GMT. the world's biggest buyer of bullion,

"We have seen some steady demand for the last couple of weeks on the back of a stronger rupee," said a dealer with a private bullion importing bank in Mumbai, adding "we will have to wait and see the sustainability."

Festival and wedding season in India, the world's biggest buyer of bullion, will start in late October and will peak at next month's Diwali and Dhanteras, traditionally marked by a frenzy of purchases of gold as gifts and dowry.

The rupee, which has strengthened 6% since the start of September, has kept the prices of yellow metal subdued in the face of firm overseas markets.

Silver edged higher following copper, another industrial metal.

Silver for December delivery on the MCX was 0.26% higher at Rs 62,483 per kg.