Physical gold market awaits fresh import guidelines

MUMBAI (Reuters) - Indian gold rose half a percent on Wednesday to extend gains for another session but the physical market remained muted, awaiting fresh guidelines from the Reserve Bank of India (RBI) after restrictions were placed on consignment imports.

To curb the widening current account deficit, India banned the import of gold on payment of margin basis, following up on a 50 percent import duty hike in January.

"The market is a bit slow after Akshaya Tritiya, supplies are difficult to get and premiums are still high," said Haresh Soni, chairman of All India Gems and Jewellery Trade Federation.

Supplies may remain tight until fresh guidelines on imports are issued by the Reserve Bank of India, probably later in the month, Soni said.

At 3.13 p.m., the actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was 0.59 percent higher at 26,263 rupees per 10 grams, in tandem with global markets.

Investors are waiting for Fed Chairman Ben Bernanke's testimony in Congress later in the day for clues on the state of the U.S. economy.

Silver for July delivery on the MCX was 0.74 percent higher at 43,490 rupees per kilogram.

(Reporting by Siddesh Mayenkar; Editing by Jijo Jacob)