Gold extends losses; festival stocking continues

Gold futures fell on Tuesday afternoon, extending the previous session's losses, following weak overseas markets, attracting traders to stock for the festival slated later in the week and weddings that follow, dealers said.

At 3:05 p. m., the most-active gold for June delivery on the Multi Commodity Exchange (MCX) was trading 0.51% lower at Rs 22,511 per 10 grams, after losing 0.85% in the previous session.

The contract has shed 1.4% from the record high of Rs 22,856 struck on Saturday's session.

"There are lot of deals. There are 50-60 deals pending at my table," said a dealer with a state-run bank in Mumbai.

India, the world's biggest consumer of bullion, celebrates Akshaya Tritiya on May 6, followed by weddings, that will end in May.

The World Gold Council (WGC) expects demand to rise for the festival season, with medallions, bars and the exchange traded funds, will be the top pick for the upcoming festival.

Being a time-tested investment asset class, gold has helped investors preserve and increase the value of their wealth, the WGC said.