MUMBAI (Reuters) - Gold traders in India braced for a fall in supply and higher premiums ahead of festivals, as the Reserve Bank of India's steps to restrict imports are expected to cut supplies for domestic consumption.
* The RBI on Monday moved to tighten gold imports again, making them dependent on export volumes with an eye to reducing a record current account deficit. However, it offered relief to domestic sellers by lifting restrictions on credit deals.
* "There will be difficulty (in supplies) when demand rises after August 15," said Haresh Acharya, head of the bullion desk at Ahmedabad-based Parker Bullion, adding supplies are getting squeezed.
* The festival season starts in mid-August and will peak with Dhanteras in November. The wedding season also starts around that period.
* India, the world's biggest buyer of gold, imported more than 330 tonnes in the quarter to June as traders stocked up anticipating a slew of measures from the federal government to cut record trade deficit.
* Gold prices hit their highest level in more than a month.
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* At 1123 GMT, the actively traded gold for August delivery on the Multi Commodity Exchange (MCX) was 0.09 percent lower at 27,549 rupees per 10 grams as pressure from a stronger rupee was offset by firm overseas markets.
* The contract hit a high of 27,716 rupees, a level last seen on June 20.
* The rupee, which hit its lowest level in a week on Wednesday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.
* Silver for September delivery on the MCX was 0.14 percent lower at 41,794 rupees per kg.
* The following were the prices of gold and silver in rupees as of 1615 local time in the spot market, quoted by HDFC Bank:
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(Reporting by Siddesh Mayenkar; Editing by Prateek Chatterjee)