Mumbai Tracking sharp overnight losses in the US bullion futures, gold and silver futures on the Multi Commodity Exchange (MCX) were trading lower amid negative sentiments among traders during early hours Thursday. While October gold went down Rs 61/10gm; December silver traded down Rs 72/kg.

Spot gold bounces after brief break below USD750/oz, on physical buying and bargain hunting, says Mitsui Asia head of precious metals Anderson Cheung Thursday. "The 750 dollar level is critical, but we bounced higher after early long liquidation selling and liquidation on Tocom dried up," Cheung says. Spot gold last traded at USD755.55, up USD3.55 against New York close.

Precious metals futures took a pounding Wednesday as funds continued selling the metals while the dollar strengthened and crude oil sank. December gold fell USD29.50, or more than 3.7%, to settle at USD762.50 an ounce on the Comex division of the New York Mercantile Exchange. Silver futures followed gold lower as the yellow metal declined on momentum selling. Comex December silver fell 82.5 cents, or more than 7%, to settle at USD10.89 an ounce.

MCX October gold contract opened down Rs 18 at Rs 11,325/10gm. The contract fluctuated between Rs 11,225 and Rs 11,325/10gm. At 11.15 am IST, the contract traded down Rs 61 at Rs 11,282/10gm.

MCX December silver opened down Rs 47 at Rs 18,098/kg. The contract tossed between Rs 17,867 and Rs 18,113/kg. At 11.17 am IST, the silver contract traded down Rs 72 at Rs 18,073/kg.

(With inputs from Dow Jones Newswire)