Gold importers retreat as prices recover

Gold importers in India retreated on Tuesday after booking deals as prices recovered partially from their lowest level in two weeks.

* The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 0.21 percent higher at Rs 31,500 per 10 grams, recovering from the previous session's Rs 31,272, a two-week low.

* "There are a few stray deals, yesterday there was good demand due to rupee appreciation," said a dealer with a private bullion importing bank in Mumbai. "Volume wise seasonal period demand is still not materialising."

* India, the world's biggest consumer, is in the middle of the festival and wedding season, which will peak in November and taper off in December.

* The yellow metal dropped in the previous session to its lowest level since September 7, weighed by a stronger rupee and as data showing weak German business sentiment hurt the euro.

* The rupee, which traded firm on Tuesday, kept the upside in prices limited. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* Silver also edged higher following the yellow metal.

* Silver for December delivery on the MCX was 0.56 percent higher at Rs 62,760 per kg.