MUMBAI (Reuters) - Gold futures in India, the world's biggest buyer of the metal, dropped nearly 3 percent on Monday to hit their lowest level in 15-1/2 months, mirroring losses in the world market.
At 10.46 a.m, the key gold contract for June delivery on Multi Commodity Exchange was down 2.64 percent at 27,189 rupeesper 10 grams, after falling to 27,100 rupees earlier, the lowest level since December 30, 2011.
In the overseas market, gold prices took a dramatic U-turn on Monday, reversing early gains to drop to a two-year trough after bullion futures fell on fears about central bank sales and holdings on global exchange-traded funds sank to their lowest in more than a year.
The wedding season has begun in India and will continue till early June. Akshay Tritiya, the second biggest gold buying festival after Dhanteras, also falls in this period.
($1 = 54.5700 rupees)
(Reporting by Rajendra Jadhav; Editing by Sunil Nair)