Gold demand improves as jewellers buy for festival

MUMBAI (Reuters) - Demand for gold in India, the world's biggest consumer of the precious metal, improved on Thursday as prices hovered near their lowest level in a week ahead of key festival Akshaya Tritiya.

* The key June contract on the Multi Commodity Exchange (MCX) was 0.63 percent up at 26,711 rupees per 10 gram at 4:51 p.m., after hitting a one-week low of 26,365 rupees late on Wednesday.

* "Jewellers are making last-minute buying for Akshaya Tritiya. But some buyers are waiting for bigger correction. They are waiting for prices to drop below 26,000 rupees," said a Mumbai-based dealer with a private bullion importing bank.

* Indians celebrate Akshaya Tritiya in the third week of May, a time considered auspicious to buy gold, while the current wedding season continues until July.

* The rupee, which plays an important role in determining the landed cost of dollar quoted yellow metal, eased on Thursday.

* In the overseas market, gold held near its weakest level in almost a week, after declines in holdings of exchange-traded funds, equities and other commodities overshadowed the U.S. Federal Reserve's decision to maintain its loose monetary policy.

* Silver for May delivery on the MCX was 1.24 percent higher at 44,200 rupees per kg. (Reporting by Rajendra Jadhav; Editing by Subhranshu Sahu)