Gold physical demand poor as prices hit 1-month high

MUMBAI (Reuters) - Gold traders in India, the world's biggest buyer of bullion, continued to stay on the sidelines on Friday as prices extended gains to their highest level in more than a month, dealers said.

* The most-active gold for February delivery on the Multi Commodity Exchange (MCX) was 0.84 percent higher at 27,820 rupees per 10 grams, after hitting 28,084 rupees, its highest since December 21.

* "Demand is zero as prices are too high... this situation may continue," said Haresh Acharya, head of bullion desk, Parker Bullion.

* The rupee, which touched a two-and-a-half month high on Friday, kept the upside in prices limited. The local currency plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* Global gold rose more than 1 percent to a 6-1/2-week high as stock markets, commodities and the euro all rallied after the U.S. Federal Reserve extended by 18 months its plan to keep interest rates low.

* Silver extended gains to its highest level in more than six weeks.

* Silver for March delivery on the MCX was 0.87 percent higher at 56,900 rupees per kg.

* Silver for March delivery on the MCX was 0.87 percent higher at 56,900 rupees per kg, after hitting a high of 56,910 rupees, a level last seen at December 13.

(Reporting by Siddesh Mayenkar; Editing by Aradhana Aravindan)