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Gold hits 6-week low, attracts physical buyers

Indian gold futures hit their lowest level in six weeks, extending losses for the third straight session on Wednesday, attracting bargain hunting by physical traders, though the rupee hitting a record low capped the downside in prices.

The most-active gold for June delivery on the Multi Commodity Exchange (MCX) hit 27,855 rupees - its lowest since April 4. At 3:11 p.m., it was down 0.71 percent at 27,925 rupees.

• The yellow metal shed 2.5 percent so far this week.
• Global gold extended losses to slip to its weakest level since late December after the collapse of efforts in Greece to form a new government, prompting investors to cut exposure to the precious metal.
• “There is buying with decent volumes, some are still hesitant due to a weaker rupee...” said a dealer with a private bank in Mumbai, which imports bullion.
• The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
• The wedding season is underway in India, the world’s biggest buyer of the yellow metal, and will taper off by the end of the month. The festival season has already ended.