Indian gold demand moderates; strong rupee checks prices
* The actively traded gold contract for February delivery on the Multi Commodity Exchange (MCX) was 0.25 percent lower at 30,746 rupees ($560.24) per 10 grams as of 9.47 am.
* "A stronger rupee is capping the upside in gold prices.
Jewellers are buying. They think it's a good time to buy, but retail demand is weak. People are in holiday mood due to year-end," said a Mumbai-based dealer with a state-run bank.
* Demand in Tamil Nadu remained strong as people in the southern state will celebrate Pongal, a popular harvest festival, in mid-January.
* The rupee, which rose on Friday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* Overseas gold gave up early gains and ticked down ahead of talks to prevent the United States from plunging off a "fiscal cliff" of tax increases and spending cuts, but prices remained on track for their first weekly gain in a month.
* The March silver contract on the MCX dropped 0.71 percent to 57,760 rupees per kg.
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