(Reuters) - Gold demand in India, the world's biggest consumer of bullion, emerged after a gap as consumers made their wedding purchases with prices of the dollar-quoted yellow metal falling in the local market on the rupee's strength. * Demand is good as the rupee is supporting, said a dealer with a private bullion importing bank in Mumbai. "Demand will recede if prices go beyond 28,000 rupees," he said. * Harvesting festival in India started on January 15, when rural demand, that contributes to 70 percent of imports, for the yellow metal goes up. Weddings also happen during this period. * Gold prices edged higher supported by firm overseas markets though a stronger rupee kept a lid on gains. * The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.36 percent higher at 27,590 rupees per 10 grams. * Silver extended gains to hit the highest level in a month. * Silver for March delivery on the MCX was 0.69 percent higher at 55,929 rupees per kg, after hitting a high of 56,310 rupees, a level last seen on December 14. * On January 17, the government raised import duty on bullion to 2 percent on value from the previous flat rate of 300 rupees per 10 grams, and to 6 percent on value from 1,500 rupees per kilogram on silver, pushing up the prices of both the metals.

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