Gold prices recover in India, importers retreat

Gold importers in India, the world's biggest buyer of the metal, retreated on Wednesday as prices recovered from their lowest level in nearly two weeks.

The festival season is underway in India and will peak with Diwali and Dhanteras next month. Weddings also take place during this period.

"There was activity yesterday, but since gold has moved up to USD 1,750 an ounce, there is not big interest at these levels today," said a dealer with a private bullion importing bank in Mumbai.

At 2:38 p.m., the most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.21 percent higher at Rs 31,104 per 10 grams, helped by global overseas leads, recovering from the previous session's two-week low of Rs 30,862, a level last seen on October 5.

Global gold inched up, rising for a second day with the support of a stronger euro as concerns about the bloc's debt crisis eased after Moody's affirmed Spain's rating and German business sentiment improved.

The rupee, which strengthened on Wednesday, capped the upside in prices. The local currency plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Silver for December delivery on the MCX was 0.26 percent higher at Rs 60,185 per kg.