Gold hits peak at Rs 31,525 per 10 gm

Drives away importers seeking to stock up for festivals and weddings

Indian gold extended gains on Wednesday to hit a peak for the fourth consecutive day so far this month, aided by a weaker rupee, driving away importers of the metal seeking to stock up for festivals and weddings.

At 2:53 pm., the key gold for October delivery on the Multi Commodity Exchange (MCX) was 0.10% higher at Rs 31,482 per 10 grams, after hitting a high of Rs 31,525, earlier in the session.

India, the world's biggest buyer of the yellow metal, is in the midst of the festival and wedding season which will continue till November.

"Demand is dull on the physical side... everyone is expecting a correction to Rs 30,800" said a dealer with a bullion importing private bank in Mumbai.

Gold imports to India are likely to fall by as much as 26%, or by 200 to 250 tonne, in 2012 as record high prices hit consumer budgets.

Silver edged lower tracking copper, another industrial metal.

Silver for September delivery on the MCX was 0.17% lower at Rs 60,500 per kg.