MUMBAI, Sept 22 (Reuters) - India's gold demand abated on Tuesday 22 September after picking up for two continuous sessions, as prices recovered from their one-week low, dealers said.

"Good demand was there at $1,000 (an ounce). I sold around 100 kgs each yesterday and the previous day," said a dealer with a state-run bank in Mumbai, adding "there is no fresh buying today."

The most-traded October contract MAUV9 was 0.35 percent higher at 15,831 rupees per 10 grams at 2:22 p.m., when a weak dollar overseas supported the yellow metal, recovering from its one-week low of 15,665 struck on Monday 21 September in late-trade.

The euro hit a one-year high against a broadly weak dollar as dealers took advantage of the U.S. currency's rise the previous session to resume selling ahead of a Federal Reserve monetary policy meeting and a Group of 20 summit later in the week. [USD/]

Dealers are hopeful that gold sales would revive as the festival season is underway.

"Stocks, which I imported way back in August is still lying unsold, festivals may help in clearing at least a part of it," said Daman Prakash Rathod from MNC Bullion, a Chennai-based gold wholesaler.

"There could be good demand if prices fall to $995-1,000 an ounce," said another dealer from a state-run bank in Mumbai.

India, the world's largest consumer of the yellow metal, is in the midst of the festival season, with Dussera slated later this month and Diwali and Dhanteras next month, which is expected to revive sagging gold sales.

The World Gold Council's January to June figures show India's gold imports fell 55 percent to 126.7 tonnes from 282.3 tonnes a year earlier.