(REUTERS) -- India gold traders stocked up on Monday afternoon, continuing to benefit from a 7 percent fall in prices from the beginning of December, while silver retraced from its 1-week low to be flat.

The most-active February gold on the Multi Commodity Exchange (MCX) was down 0.17 percent at 27,714 rupees per 10 grams, reversing from an early low of 27,593 rupees.

Prices seems affordable, jewellers are restocking to meet ongoing demand... demand is good today as well, said a dealer with a private bullion importing bank in Mumbai.

Silver for March delivery on the MCX was trading 0.16 percent higher at 51,929 rupees per kg, recovering from an early low of 51,366 rupees, a level last seen on Jan. 2.

Market participants will also closely watch debt auctions this week by Italy and Spain, seen as a test if investors are willing to pour more money into the euro zone, now in its third year of the debt crisis.

India imported about 878 tonnes of gold in 2011, down from 958 tonnes in 2010, Bombay Bullion Association President Prithviraj Kothari said, and shipments will continue to plunge in the first quarter to March.