Gold edges higher, physical demand still weak

* At 2:43 pm, the most-active gold for August delivery on the Multi Commodity Exchange (MCX) was 0.26% up at Rs 29,234 per 10 grams.

* Overseas gold hovered near USD 1,580 per ounce as investors clung to hopes for more monetary easing from the US central bank after weak data in the previous session.

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

* Gold imports into India have already witnessed a more than 50% drop, and continue to fall in coming quarters.

* "Demand has slowed down again... there could be offtake if prices fall to Rs 28,800," said Ketan Shroff, director with Pushpak Bullion, a wholesaler in Mumbai.

* A below-average monsoon could impact farm income. Most of the country's gold imports happen through rural areas.

* India's gold imports fell by over half in the June quarter and could slide by a third over the next three months as prices inflated by a weak rupee and a 4% import duty encourage traders to use scrap, a Reuters poll showed.

* Silver traded flat. Silver for September delivery on the MCX was 0.01% higher at Rs 52,676 per kg.