Gold eases on strong rupee

MUMBAI (Reuters) - Indian gold futures eased on Tuesday due to a stronger rupee amid steady overseas markets, while physical traders stayed on the sidelines seeking bigger falls as they prepare to stock for a key festival next month.

* India, the world's biggest buyer of the metal, will celebrate Akshaya Tritiya next month, the second-biggest gold buying festival after Dhanteras. Weddings have also started and will continue until July.

* The actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was trading at 26,888 rupees per 10 gram at 7:21 p.m., down 263 rupees, after hitting a two-week high of 27,447 rupees last week.

* The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

* In the overseas market, gold edged lower as the dollar strengthened against the euro, while support from the physical market softened as major buyer China was on holiday.

* "We sold quite good volumes last week, but sales are lower this week," said a dealer with a state-run bank in Mumbai.

* A 20 percent drop in prices triggered a buying frenzy among importers, but buyers have retreated after the recovery in prices.

* Silver for May delivery on the MCX was 0.68 percent lower at 44,978 rupees per kg.

(Reporting by Siddesh Mayenkar; Editing by Subhranshu Sahu)