MUMBAI, July 20 (Reuters) - Indian gold edged higher on Friday, helped by global markets and a weaker rupee, with physical traders eager to book deals ahead of the festivals months. * At 2:43 pm, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.26 percent up at 29,234 rupees per 10 grams. * Overseas gold hovered near $1,580 per ounce as investors clung to hopes for more monetary easing from the U.S. central bank after weak data in the previous session. * The rupee, which weakened on Friday, plays an important role in determining the landed cost of the dollar-quoted yellow metal. * Gold imports into India have already witnessed a more than 50 percent drop, and continue to fall in coming quarters. * "Demand has slowed down again... there could be offtake if prices fall to 28,800 rupees," said Ketan Shroff, director with Pushpak Bullion, a wholesaler in Mumbai. * A below-average monsoon could impact farm income. Most of the country's gold imports happen through rural areas. * India's gold imports fell by over 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. * Silver traded flat. Silver for September delivery on the MCX was 0.01 percent higher at 52,676 rupees per kg. * At 1:15 p.m., following were the prices in rupees quoted by HDFC Bank in the spot market : Friday Thursday ============================================= Gold .999/10 grams 29,403 29,450 Silver .999/kg 53,394 53,680 At 2:43 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 29,234 +76 Sept silver 52,682 +12

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