Gold futures recover from over one-week low

MUMBAI (Reuters) - Gold futures in India recovered on Tuesday from their lowest level in more than a week, helped by a weaker rupee with physical traders still struggling to get supplies despite paying high premiums.

* The most-active gold for February delivery was 0.38 percent higher at 28,941 rupees per 10 gram on the Multi Commodity Exchange at 1.35 pm, after hitting a low of 28,752 rupees earlier in the day, a level last seen on December 6.

* Silver for March delivery was 0.24 percent higher at 45,437 rupees per kg.

* The rupee, which plays an important role in determining the landed cost of the dollar-quoted yellow metal, was down on Tuesday.

* In the domestic market, buying remained subdued due to non-availability of stocks, supporting premiums.

* "Most of the demand is being met by recycled gold... We don't prefer paying high premiums to MMTC," said Kumar Jain, vice-president of the Mumbai Jewellers Association. MMTC is a state-run gold importer.

* Indian gold imports may fall 70 percent in the final quarter of 2013 from 255 tonnes in the year-ago period and are expected to be half the usual levels at 500-550 tonnes next year if new import rules are maintained, a top trade body official said.

* To curb a rising trade gap, the Indian government slapped a record import duty of 10 percent, and tied imports for domestic consumption with exports.

* India will keep a tight leash on gold imports despite a recent improvement in its trade deficit and lobbying by a bullion industry struggling with high premiums and a supply crunch.

(Reporting by Siddesh Mayenkar; Editing by Subhranshu Sahu)