Record rupee weakness triggers recovery in gold

* At 0850 GMT, the most-traded gold contract was trading at Rs 29,965 per 10 grams, up from the previous session's low of Rs 29,815.

* "Activity is still dull despite yesterday's fall because of the constant fall in the rupee," said a dealer with a private bank in Mumbai.

* The rupee weakened beyond the psychologically important 57-per-dollar mark on Friday, hitting a record low for a second consecutive session.

* The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* India's monsoon rains are still expected to be average in 2012, allaying concerns over farm output triggered by sparse rainfall in the last few weeks.

* Rural areas, which contribute to over 60 percent of gold demand, are dependent on monsoon rains to spur agricultural production and disposable incomes.

* The onset of the rains curtail festive and wedding activity.

* Silver followed a similar trend.

* Silver for July on the MCX was 0.28% higher at Rs 53,045 per kg.