Gold traders await further price fall

Gold traders in India, the world's biggest buyer of bullion, stayed on the sidelines on Tuesday after a brief pick-up in activity the previous day, on expectations global prices will fall further tracking a weak euro.

The most-active gold for April delivery on the Multi Commodity Exchange (MCX) was 0.37% lower at Rs 28,015 per 10 grams, recovering from a low of Rs 27,985, a level last seen on February 7.

"Overnight demand was good as prices have come down... but now buying is stable," said a dealer with a state-run bullion importing bank.

Global gold edged lower, tracking a weaker euro, as wary investors focused on whether Greece will be able to convince Europe to grant a much-needed bailout and implement unpopular reforms.

A weaker rupee kept the downside in prices limited. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

Silver also edged lower, tracking gold.

Silver for March delivery on the MCX was 0.36% lower at Rs 56,462 per kg.