Gold jewelry display in Calcutta
After losing to China its world gold buyer status, Indian gold jewelry demand has been forecast to grow 10 per cent to 15 per cent in 2012 on expectations prices of gold will fall down versus the rupee. Reuters

India gold futures eased a tad from its highest level in more than a month on global cues and a firm rupee at home, though physical buyers held back from placing new orders after the sudden spike in prices in the previous session, dealers said.

The most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.66 percent lower at 27,665 rupees per 10 grams, reversing from the previous day's one-month high of 27,875 rupees, its most since Sept. 23.

Global spot gold edged lower on Friday, still on course for its biggest weekly rise in two months after the euro zone's last-minute deal on containing debt crisis buoyed commodities and equities.

The Indian rupee rose to its strongest level in nearly two weeks as appetite for riskier assets improved after European leaders thrashed out a plan on Thursday to contain the region's debt crisis, propelling the euro and global equities higher.

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

Since the market has moved sharply up, traders have booked just a couple of deals, said a dealer with a private bank in Mumbai. I for see good demand coming up due to weddings.

Weddings demand will continue and peak in November and December in India, the world's biggest bullion buyer.

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