India Gold Futures Down Due to S&P Downgrading

India gold futures fell back Tuesday afternoon to their lowest level in a week, following overseas trends, where fears of a possible credit rating downgrade for eurozone nations by Standard & Poor's weighed.

* The most-active gold for February delivery on the Multi Commodity Exchange was 0.54 percent lower at 28,890 rupees per 10 grams, after hitting 28,763 rupees, a level last seen on November 26.

* Silver also fell from the highest level in three weeks following the yellow metal.

* The most-active silver for March delivery on the MCX was 0.78 percent lower at 56,397 rupees per kg, falling from the previous day's highest level since November 16.

* The ratings agency announced the warning just as leaders of France and Germany agreed a master plan involving treaty change to impose budget discipline across the euro zone, ahead of a key European Union summit on Friday.

* Banks, the primary dealers of bullion, were shut for a public holiday, keeping the physical buying lackluster. Wedding season is underway in India, the world's biggest buyer of bullion.