Mumbai Defying the heavy overnight gains in the US gold and silver futures, both the precious metals collapsed on the Multi Commodity Exchange (MCX) amid heavy profit-booking of recent gains and selling by traders during initial hours of trade Friday. While October gold plunged Rs 670/10gm; December silver traded down Rs 754/kg.

Spot gold traded steady as market is confused after another massive overnight trading range of USD840.40-USD916.20/oz, says a Tokyo-based trader Friday. Central banks has injected massive amount of liquidity to free up frozen credit markets, easing some fears and thus helping US equities bounce. But the market is unsure if improved sentiment can be sustained. Spot gold last at USD852.00, unchanged against New York close.

Another day of outsized gains on safe haven buying sent gold futures rocketing past USD900 an ounce Thursday - only one session after the metal left the USD800 mark in the dust in it's largest-ever single-day increase. Most-active December gold rose USD46.50 or 5.4%, to settle at USD897 on the Comex division of the New York Mercantile Exchange. The contract reached as high as USD926, its loftiest point since Aug 1. Comex December silver rose a whopping USD1.025, or 8.7%, to settle at USD12.70 an ounce.

MCX October gold contract opened down Rs 102 at Rs 11,208/10gm. The contract fluctuated between Rs 12,580 and Rs 13,208/10gm. At 10.28 am IST, the contract traded down Rs 670 at Rs 12,640/10gm.

MCX December silver opened down Rs 131 at Rs 20,153/kg. The contract tossed between Rs 19,300 and Rs 20,153/kg. At 10.29 am IST, the silver contract traded down Rs 754 at Rs 19,530/kg.

(With inputs from Dow Jones Newswire)