MUMBAI (Reuters) - Indian gold futures edged higher from their lowest level in a month, helped by global leads and a weaker rupee at home, while banks, the primary dealers of bullion, awaited policy direction after the government restricted imports on a consignment basis.
At 2 p.m., the actively traded gold for June delivery on the Multi Commodity Exchange (MCX) was 0.57 percent higher at 26,238 rupees per 10 grams, after hitting a low of 25,373 rupees in the previous session, a level last seen on April 18.
India, the world's biggest buyer of the metal, banned gold imports on a consignment basis except for jewellery exporters and in January raised the import duty on gold by 50 percent to 6 percent.
"We have no clue how to import," said a dealer with a private bullion importing bank in Mumbai.
India's gold and silver imports jumped 138 percent in value terms in April as traders stocked up ahead of the Akshaya Tritiya festival in May, which is an occasion to buy gold.
"There is no action in the market. Everybody has stopped consignment imports... Premiums are still on the higher side in the domestic market," said another dealer with a private bank in Mumbai, adding, premiums charged by wholesalers were at $15-20 an ounce.
Silver also edged higher from its lowest level in more than two years.
Silver for July delivery on the MCX rose 0.33 percent to 43,404 rupees per kilogram, after hitting a low of 40,749 rupees in the previous session, the lowest since early January 2011.
($1 = 55.1050 rupees)
(Reporting by Siddesh Mayenkar; Editing by Anupama Dwivedi)
