MUMBAI: Physical traders of gold in India preferred to stay on the sidelines ahead of next month's festival season as prices extended gains for another session in tandem with global trends, though a stronger rupee kept the upside in prices limited. At 0834 GMT, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.18 percent higher at Rs 29,334 per 10 grams, building on the previous session's gains. In the overseas market, investors waited for Federal Reserve chairman Ben Bernanke's Congressional testimony which is expected to provide clues on the probability of further monetary easing. The rupee, which strengthened on Tuesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal. India's festival season will start in August and continue till November. Weddings also take place during this period. "Demand is very poor... I don't see demand recovering this year due to high prices," said Mayank Khemka, managing director, Khemka Group, a Delhi-based wholesaler. Gold imports could pick up in the second half of the year if prices ease, but annual volumes will still fall 30 percent after a tax increase that could crimp demand. Silver futures also traded higher following the yellow metal. The most-traded silver for September delivery on the MCX was up 0.32 percent at Rs 52,914 per kg.

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