Gold falls from peak, traders seek more

Indian gold prices fell half a percent from its peak on Tuesday as investors chose to book profits from a record rally, though jewellers waited for a bigger fall in prices to stock for the festival and wedding season.

The most-traded gold for October delivery on the Multi Commodity Exchange (MCX) was 0.52% lower at Rs 30,909 per 10 grams, after falling to a low of Rs 30,893 earlier. Gold hit a contract high of Rs 31,110 on Monday.

Overseas gold also fell on Tuesday after rising to its highest level in nearly four months in the previous session, as caution prevailed ahead of a central banker's meeting this week.

Investors are also eyeing the rupee's movement, which plays an important role in determining the landed cost of the dollar-quoted yellow metal.

"Demand is still not there as prices are still near the high... there is disparity with local prices," said a dealer with a private bank in Mumbai which sells imported bullion.

The festival season is underway in India, the world's biggest consumer of bullion, and will continue till November.

Gold imports to India are likely to fall by as much as 26%, or by 200 to 250 tonnes, in 2012 as record high prices hits consumer budgets.

Following were the prices in rupees at 4:15 p.m., quoted by HDFC Bank in the spot market: