MUMBAI (Reuters) - India gold edged higher on Wednesday afternoon boosted by firm overseas markets, though a stronger rupee at home reigned in the upside, keeping physical traders at bay, dealers said. * At 3:10 p.m., the most-active gold for December delivery on the Multi Commodity Exchange (MCX) was 0.50 percent higher at 27,663 rupees per 100 kg, after hitting a high of 27,634 rupees, a level last seen on Oct. 28. * Overseas gold prices firmed, riding on renewed safe-haven demand as fears about Greece's debt crisis returned after its government shocked the markets with a call for a referendum on a European Union aid deal. * The rupee bounced back, tracking local shares which recovered on foreign fund inflows, while gains in the euro also aided. * The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars. * Physical buying retreated in India, the world's biggest buyer of bullion, as traders awaited for price falls seeking to stock for the wedding season, which will last till December. * "Physical players seem off today, and demand cooled a bit," said a dealer with a private importing bank in Mumbai. * "Prices are slightly higher, and they are convinced about limited upside, they could get active close to $1,700 (an ounce)again," said the dealer.

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