Mumbai, Oct 27 - Both the precious metals opened stronger Saturday following overnight sharp rise inUS market withbenchmark December gold futures breaking past psychological Rs. 10,000 level on the Multi Commodity Exchange [MCX]. As crude oil appreciated and the US dollar hit new lows ahead of next week's Fed meeting, the precious metals complex ended stronger Friday, with gold and silver hitting multi-month highs and platinum setting a fresh contract high. December gold rose USD16.50, or more than 2.1 per cent, to settle at USD787.50 an ounce on the Comex division of the New York Mercantile Exchange. The contract's high of USD788 during the pit session was the highest the metal has been since May 2006. As pit trade was closing, the December contract at the Chicago Board of Trade was up USD16.50 to USD787.70. Comex December silver rose 37.5 cents, or nearly 2.7%, to settle at USD14.28 an ounce after hitting a USD14.31 high that was its strongest level since April. As silver's pit session was closing, CBOT December silver was up 36.8 cents to USD14.284.

Gold's moves are in large part based on expectations for a 25-basis-point rate cut by the Federal Open Market Committee when a policy-setting meeting ends Wednesday, said Tom O'Brien, precious-metals analyst and editor of "The Gold Report" newsletter. If the market were anticipating a 50-basis-point cut, he adds, "gold would be through the roof."

The benchmark MCX December gold rose Rs. 10 to open at Rs. 9,988/10 gm, and saw movement between Rs. 9,988 and Rs. 10,010/10 gm. The contract is currently trading up Rs. 30 at Rs. 10,010/10 gm.

Most-activeMCX December silver went up Rs. 16 to open at Rs. 18,700/kg, and saw movement between Rs. 18,700 and Rs. 18,721/kg. The contract is currently trading up Rs. 37 at Rs. 18,724/kg.

[Source: Dow Jones Newswire & MCX at 10.02 am IST]