MUMBAI (Reuters) - Indian gold futures edged up on Wednesday tracking a firm overseas market and on a weak rupee, but falling oil prices may cap the gains later in the day, analysts said. "There is some pull-back, but the market is unlikely to sustain at higher levels," said Gnanasekar Thiagarajan, director, Commtrendz Research. Overseas gold regained some footing on Wednesday, after dropping more than 1 percent in New York, as the euro inched up against the U.S. dollar and bargain-hunting resurfaced. The Indian rupee fell to its lowest in a week on Wednesday as weak Asian share markets sparked concern of capital outflows from Indian stocks and the benchmark index hovered in negative territory. India imports most of its gold. A weak rupee makes imports costlier and pushes up domestic prices. The only negative factor is falling oil prices, which may pull down the market, said Debjyoti Chatterjee, associate vice president, MAPE ADMISI Commodity Research. Oil inched lower on Wednesday, after falling 5 percent a day ago to close below $60 for the first time since March 2007, as weakening energy demand more-than-offset news of more supply reductions. Gold generally moves in tandem with crude oil as the latter signals inflation, while the metal negates it. Open interest for December gold on MCX was at 9,165 lots, up from 9,018 the previous session. Volume on Tuesday was 42.5 kg.

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