(Reuters) - India gold futures were steady on Friday afternoon in step with overseas markets, though a strong rupee could weigh on sentiment later in the day, dealers said.
* At 1:15 p.m., the most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.06 percent lower at 27,971 rupees per 10 grams.
* Overseas spot gold was almost flat at $1,761.65 an ounce, but headed for its second week of gains. On Thursday, gold rose to $1,767.40, its strongest since Sept. 22. It had reached a record around $1,920 in September.
* The rupee strengthened in afternoon trades on Friday nudged by firm local equities but strong dollar demand, most likely for defence-related payments, limited the rise, traders said.
* The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
* Physical buying slowed as traders refrained from placing fresh positions at keenly watched 28,000 rupees mark.
* "Buying is not there, it will be like that for some time," said a dealer with a state-run bullion dealing bank in Mumbai.
(Reporting by Siddesh Mayenkar; Editing by Rajesh Pandathil)
