MUMBAI (Reuters) - India gold futures edged higher on Wednesday, in line with international markets, but a strong rupee kept a lid on gains, analysts said. The most active August contract was 0.31 percent higher at 14,653 rupees per 10 grams at 11:20 a.m. At 11:20 a.m, Comex gold for August delivery was 0.65 percent higher at $960.9 an ounce as rising crude-oil stoked inflation worries. However, a strong rupee, which makes the dollar-quoted asset cheaper, kept a lid on gains. The Indian rupee rose for a second straight day as hopes for financial reforms in the budget in early July raised expectations foreigners would continue to bring in more capital. "Our view is that gold may see some more upside and target 14,700 later," Devarsh Vakil, manager-research, Anagram Capital. Buying is recommended at 14,630/14,640 rupees, with a target of 14,700 rupees and with a stop loss of 14,590 rupees, said Vakil. "If euro continues to gain, then gold may see an upside of 14,725/14,750 later," said Gnanasekar Thiagarajan, director, Commtrendz Research. Open interest for August gold on MCX was at 14,575 lots, up from 14,486 a day earlier. Volume on Tuesday was 36.83 kg.

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