Mumbai - Notwithstanding sharp overnight decline in the US bullion futures, gold and silver futures on the Multi Commodity Exchange (MCX) recovered slightly and traded green during early hours of session Thursday. While August gold traded up marginally by Rs 18/10gm; September silver contract gained Rs 98/kg.

Spot gold last traded up USD4 from New York close at USD963.20/oz, mainly on some dip buying after slide overnight, says a HK-based trader at international bank Thursday. "There was fairly good Japanese buying early this morning but it's been steady since then," he says. He adds that the market is unlikely to move much rest of Asia trade, as it is watching EUR/USD for cues; which is now at 1.5850 after edging up in the morning.

Gold futures tumbled Wednesday largely on the heels of an inventory data-inspired sell-off in crude oil, although stronger stocks and uptick in the dollar index added to the liquidation in the metal. "It's pretty much tracking the crude oil, which was the dominant influence today," said Dave Rinehimer, director of futures perspective at Citigroup Global Markets. "Our highs for gold and silver coincided with the August crude being up around USD139 (per barrel). August gold fell USD16 to USD962.70 an ounce on the Comex division of the New York Mercantile Exchange. September silver fell 20.8 cents to USD18.805.

MCX benchmark August gold contract opened down Rs 20 at Rs 13,345/10gm. The contract saw movement between Rs 13,335 and Rs 13,392/10gm. At 10.54 am IST, the contract traded up Rs 18 at Rs 13,383/10gm.

MCX benchmark September silver opened up Rs 83 at Rs 26,300/kg. The contract fluctuated between Rs 26,201 and Rs 26,336/kg. At 10.54 am IST, the silver contract traded up Rs 98 at Rs 26,315/kg.

(With inputs from Dow Jones Newswire)