MUMBAI: India's gold traders picked up bargains on Tuesday in the middle of the wedding season as the yellow metal reversed early gains on a strong overseas dollar, dealers said. The most-traded February contract on the Multi Commodity Exchange was 0.23 percent lower 16,985 rupees per 10 grams at 2:31 p.m., falling from an intra-day high of 17,108 rupees. The euro hit a 2 1/2-month low against the dollar as traders dumped the single European currency on the back of reports that Austria had put one of its major banks on a watchlist. A strong dollar dims the yellow metal's appeal as an alternative investment. "There are deals coming in... I did about 50 kgs since morning, in fact $1,110 level and thereabout is showing buying interest," said a dealer with a state-run bank in Mumbai. India's gold demand has seen a continuous trickle after prices fell by about 7.7 percent from their record of $1,226.10 an ounce, struck on Dec. 3. "If gold falls below $1,110, then we could see further demand," added another dealer with a private bank. India's December gold imports are likely to spurt to 15-20 tonnes from 3 tonnes a year earlier, mainly on the back of the wedding season demand and easing prices, the head of the Bombay Bullion Association (BBA) said in an interview on Dec. 9. Wedding season will last till December-end.

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