Gold traders cut purchases, silver down 1%

India gold traders held back purchases on Monday, awaiting a sharper fall in prices, which eased from the previous session's one-month high, while a weaker rupee also weighed on demand.

* The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was trading 0.23% lower at Rs 27,927 per 10 grams, easing from a month's high of Rs 28,084 hit on Friday.

* "Volumes (in the physical segment) are very thin since morning," said a dealer, adding "They are looking for a correction to $1,680/1,690 (an ounce)".

* Global gold ticked lower on Monday after earlier rising to its highest in more than seven weeks.

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

* Silver also fell tracking the yellow metal. Silver for March delivery on the MCX was 1.04% lower at 56,634 rupees per kg.