Gold futures extend losses, hit three-week low

MUMBAI (Reuters) - Gold futures in India, the world's biggest buyer of the metal, extended losses to their lowest level in three weeks, though physical sales remained lacklustre as seasonally dull demand weighed.

* At 4 p.m., the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 1 percent lower at 26,759 rupees per 10 grams, after hitting a low of 26,650 rupees, a level last seen on May 30.

* Global gold fell over 1 percent, extending last week's 7 percent decline, hurt by a stronger dollar amid worries over an early end to the U.S. Federal Reserve's stimulus programme.

* A weaker rupee kept the downside in prices limited. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* "There are no supplies in the market, we are facing difficulty... our sales have declined by 75 percent," said Harshad Ajmera, proprietor of JJ Gold House, a wholesaler in the eastern city of Kolkata.

* India imposed a ban on consignment imports in May, but has ruled out a blanket ban on gold imports or any increase in customs duty from the current 8 percent.

* On Friday, Reliance abruptly halted gold sales and investments in its gold-backed funds.

* Gold imports into India fell from an average of $135 million per day in the first half of May to $36 million in the second half, Finance Minister P. Chidambaram said.

* Silver for July delivery on the MCX was 1.65 percent lower at 40,914 rupees per kilogram.

(Reporting by Siddesh Mayenkar; Editing by Jijo Jacob)