Gold falls for 3rd day, traders stay away

Gold prices in India fell for a third day on Tuesday weighed by a stronger rupee, that hit its highest level in a month-and-a-half, but price falls were not enough for physical traders seeking to book the yellow metal.

* At 1048 GMT, the most-active gold contract for August delivery on the Multi Commodity Exchange (MCX) was 0.28% lower at Rs 29,576 per 10 grams.
* The rupee, which touched 54.75 per dollar, its strongest level of since May 22, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* In the international market, however, gold gained half a percent after weak global manufacturing data rekindled hopes of more easing from central banks to support recovery.
* Traders were also eyeing the progress of the monsoon rains, vital to incomes in rural areas, which contribute to 60 percent of gold imports.
* "There is some bit of buying... things will be dull until August," said Haresh Acharya, head of bullion desk, Parker Bullion in Ahmedabad.
* Silver edged higher following copper, another industrial metal.
* Silver for July delivery on the MCX was 0.52 % higher at Rs 52,413 per kg.