Gold prices set for 2 % fall this week

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Gold futures in India, the world's biggest buyer of the metal, hovered around their lowest level in a week, though prices were on track for a 2 % fall this week.

* At 2:49 p.m., the actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was down Rs161 at Rs 29,022  per 10 grams.

* It had touched a low of Rs 29,055  in the previous session, a level last seen on April 5.

* In the overseas market, gold prices were also steady, but on track for their worst week since late February as strong equities lured investors seeking better returns, while outflows from exchange-traded funds underlined the shaky outlook for bullion.

* A stronger rupee weighed on sentiment. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* "Market is slow. Buyers are still waiting for Rs 29,000  levels," said Haresh Acharya, head of bullion desk at Ahmedabad-based Parker Bullion.

* The wedding season has begun in India and will continue till early June. Akshay Tritiya, the second biggest gold buying festival after Dhanteras, also falls in 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.

* On April 2, Finance Minister P. Chidambaram suggested the government was unlikely to raise the import tax on gold further to avoid gold smuggling.

* Silver for May delivery on the MCX was 0.29 % lower at Rs 51,525  per kilogram.