MUMBAI (Reuters) - Gold futures in India rose to their highest level in a week, in line with overseas markets, though a stronger rupee kept the upside limited and premiums eased a tad in the physical market ahead of a harvest festival.
The actively-traded gold for February delivery on the Multi Commodity Exchange (MCX) was 0.16 percent higher at 29,079 rupees per 10 grams, after hitting a high of 29,045 rupees, a level last seen on January 6.
Silver for March delivery on the MCX was 0.31 percent lower at 44,686 rupees per kg.
Global gold extended gains to a third session to hit its highest in a month after a surprisingly weak U.S. jobs report stoked expectations that the Federal Reserve could temper the pace of its stimulus wind-down.
The rupee, which hit its highest level in a week, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
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Premiums were at $120 an ounce on London prices as against $130 an ounce last week, said Bachhraj Bamalwa, director of the All India Gems and Jewellery Trade Federation, an umbrella body of more than 300,000 jewellers.
"Premiums have come down a bit as there is no demand," said Bamalwa.
Indian gold imports may have fallen 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 in 2014 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.
(Reporting by Siddesh Mayenkar; Editing by Anupama Dwivedi)
