(Reuters) - Indian gold prices were steady as pressure from overseas markets was offset by a weaker rupee, keeping physical traders away as they awaited direction in prices. * At 1:59 p.m., the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was flat at 29,264 rupees per 10 grams. * Global gold edged lower, dropping for a fourth session out of six. Investors remained cautious on indications the Federal Reserve was unlikely to launch more monetary stimulus until U.S. economic conditions weakened further. * The rupee, which lost ground on Thursday, plays an important role in determining the landed cost of the dollar-quoted yellow metal. * "There is a slight pick-up... but this will taper off in a few days," said Harshad Ajemra, proprietor, JJ Gold House, a wholesaler in Kolkata. * Traders would also eye the progress of the monsoon, which has been scant so far. Rural areas, which contribute to 60 percent of the gold demand, depend on monsoon rains for better farm productivity, yields and profits. * Gold imports could pick up in the second half of this year if prices ease, but annual volumes will still fall 30 percent after a tax hike that could crimp demand. * Silver edged lower following copper, another industrial metal. * The most-active silver for September delivery was 0.47 percent lower at 52,487 rupees per kg. * At 1:15 p.m., following were the prices in rupees quoted by HDFC Bank in the spot market : Thursday Wednesday ========================================== Gold .999/10 grams 29,400 29,738 Silver .999/kg 53,120 53,097 At 2:19 p.m., following were the prices in rupees on the Multi Commodity Exchange of India Ltd <0#MAU:>: Contract Current price Net change ============================================= Aug gold 29,257 -8 Sept silver 52,482 -253 (Reporting by Siddesh Mayenkar; Editing by Anand Basu)

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