Gold traders wary as prices at 2-month high

Indian gold traders refrained from taking fresh positions on Wednesday as the yellow metal rose for a sixth straight session to hit its highest level in nearly two months.

* At 0854 GMT, the most-active gold for October delivery on the Multi Commodity Exchange (MCX) was trading 0.32% higher at Rs 30,415, having earlier struck a high of Rs 30,440, a level last seen on June 26. * Global gold gained slightly to hover near a 3-1/2 month high hit in the previous session as investors remained hopeful the European Central Bank would soon take action to contain the region's debt crisis. * The festival season is underway in India, the world's biggest buyer of bullion. Gold imports have already halved so far this year and a likely drought could further dent rural demand. * "Currently sales are lower... there could be some demand in coming months," said SL Jain, president, Chandani Chowk Jewellers Association in New Delhi. * Gold imports during the September-December peak demand season could fall by 40% on year to 200 tonnes, the head of a trade body said. * Rural areas, which depend on monsoon rains for yields and income, contribute to about 60% of the country's demand. * Silver also moved higher tracking the yellow metal. * Silver for September delivery was 0.38% higher at Rs 55,451 per kg.