India gold futures are likely to edge higher, extending gains for the third week in a row, helped by European debt crisis, with traders awaiting the Federal Reserve panel's meeting later this week for direction in precious metals, analysts said. The most-active gold for August delivery on the Multi Commodity Exchange (MCX) was trading 0.15 percent higher at 22,683 rupees per 10 grams, steady near a week's high struck last week. The contract had gained about 1 percent in the previous two weeks. "The bias is on the upside. Buying could be done at 22,610 rupees, for a target of 22,760 rupees, maintaining a stop loss of 22,570 rupees," said Aurobinda Prasad, head of research, Karvy Comtrade. Overseas gold was trading at $1,543.89/1,544.71 an ounce as against $1,539.95/1,540.95 in the last session. Financial markets are waiting for a confidence vote on the government in the Greek parliament later in the day, a step towards the passage of more spending cuts in exchange for foreign loans. Market participants will watch for comments by Federal Reserve Chairman Ben Bernanke on the outlook for growth just as the second phase of quantitative easing measures in the world's biggest economy is supposed to wind down. Traders said slack physical offtake from the local market could weigh on prices. India, the world's biggest buyer of yellow metal, is in a seasonally lean demand period due to monsoon as farmers divert their savings on agricultural equipment and fertiliser for summer-sown or kharif crops. The most-traded silver for July delivery on the MCX was trading 0.20 percent higher at 54,115 rupees per kg. Karvy's Prasad said the bias in silver is on the upside, adding, buying could be done at 53,966 rupees for a target of 55,682 rupees. (Reporting by Siddesh Mayenkar; Editing by Rajesh Pandathil)

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