India gold rose on Friday, extending gains for a third session, following a similar trend overseas, although a stronger rupee limited the upside in prices at home, dealers said.

* The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.57 percent higher at 26,662 rupees per 10 grams, after gaining 2.3 percent in the previous two sessions.

* Global gold headed for its biggest weekly gain in a month as equities regained strength after fresh European efforts to resolve the debt crisis eased worries about a global recession, while purchases from jewellers offered additional support.

* The rupee rose as shares rebounded strongly following fresh efforts by euro zone policymakers to prevent precipitation of Europe's debt problems into a financial crisis.

* The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.

* Physical buying continued as traders sought to stock for the upcoming festivals later in October.

* There is demand for the last 7-8 days traders have started re-stocking. It was a welcome correction when market came down to $1,650 (an ounce), said a dealer with a private bullion-importing bank in Mumbai.

* Festival demand will remain very strong as people are convinced that prices will not further go down from here, while the sky is the limit for upside, said the dealer.