Gold extends gains to over one-week high

The yellow metal saw its price peak even as demand remained low

Gold prices in India extended gains on Monday to hit the highest level in 10 days, attempting to reclaim the keenly watched Rs 30,000  mark, helped by a weaker rupee and firm overseas markets.

* At 2:57 p.m., gold for immediate delivery on the Multi Commodity Exchange (MCX) was 0.65 % higher at Rs 29,565  per 10 gram, after hitting a high of Rs 29,644 , a level last seen on March 7.

* Overseas gold rose above $1,600 for the first time in more than two weeks as a radical bailout package for Cyprus threatened to trigger fresh turmoil in the euro zone, driving investors to seek safety in gold.

* The rupee, which weakened on Monday following losses in domestic equity markets and a broad risk-off globally, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* "Demand is very low due to high prices and lack of liquidity before the year-end. Things will be clear in April," said Haresh Acharya, head of bullion desk, Parker Bullion.

* Weddings and festival season will re-start in April and continue until early June in India, the world's biggest buyer of gold.

* India has been trying to curb imports of gold, which has been called a dead investment by the federal government, to put a lid on record high current account deficit by raising import duty by 50 % to 6 % in January.

* Silver for May delivery on the MCX was 0.31 % higher at Rs 54,363  per kg.