Gold futures were slightly higher on Tuesday, supported by a weak rupee, but weak international markets restricted the upside, analysts said.

A weak rupee makes the dollar-quoted asset expensive.

The Indian rupee dropped for a second day on Tuesday on the back of the dollar's gains versus major currencies, with traders also bracing for demand from oil refiners.

International gold eased on Tuesday in thin trading, weighed down by a recovery in the dollar, but just off a two-month high touched last week.

"The upside movement is only due to weak rupee," said Vishakha Chhabria, an analyst with Ventura Commodities Pvt Ltd.

At 12:06 p.m, most-active June futures contract was up 0.27 per cent at Rs 14,628.