Indian gold edged higher on Thursday, recovering from its lowest level in six weeks, in line with global markets, keeping away physical traders looking for bargains.
* At 2:31 pm, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.26 percent higher at 29,236 rupees per 10 grams, recovering from the last session's low of 29,142 rupees, a level last seen on June 8.
* Global gold edged up on Thursday after two straight sessions of losses as the dollar weakened, although investors were unsure of its direction.
* The rupee, which traded strong on Thursday, limited the upside.
* "The market is waiting for a further correction to buy... people are not getting the benefit of a drop in overseas prices due to a weaker rupee," said a dealer with a private bank in Mumbai.
* The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* India's gold imports fell by more than half in the June quarter and could slide by a third over the next three months as prices inflated by a weak rupee and a 4 percent import duty encourage traders to use scrap, a Reuters poll showed.
* Even a below-average monsoon could impact farm incomes. Most of the country's gold imports happen through rural areas.
* Silver for September delivery on the MCX also moved higher, following the yellow metal.
* Silver on the MCX was 0.44 percent higher at 52,937 rupees per kg.
