Mumbai Taking cue from the overnight and later early morning losses in the international bullion markets, gold and silver futures were trading down as bearish sentiments prevailed among traders on the Multi Commodity Exchange (MCX) Friday. While October gold dropped Rs 69/10gm; December silver traded down Rs 126/kg.

Spot gold last traded at USD794.50./oz, down 20 cents against New York close. ScotiaMocatta says spot gold needs a close back up above USD825 to ease the bearish pressure. "The target remains USD773.50, the August low, with risk of a deeper move down to USD766."

Gold and silver futures gave up early gains Thursday when the dollar rose and crude oil fell, with some liquidation reported. But while the metals weren't able to rise in response to a tumble in equities, the stock-market sell-off also may have limited the downside for gold and silver, observers said.

December gold fell USD5 to USD803.20 an ounce on the Comex division of the New York Mercantile Exchange after earlier trading as high as USD819.50. December silver closed nearly steady, dipping just 0.7 cent to USD12.94, but also fell back from its peak of USD13.265.

MCX October gold contract opened down Rs 25 at Rs 11,603/10gm. The contract fluctuated between Rs 11,551 and Rs 11,603/10gm. At 11.10 am IST, the contract traded down Rs 69 at Rs 11,559/10gm.

MCX December silver opened down Rs 60 at Rs 19,901/kg. The contract tossed between Rs 19,771 and Rs 19,901/kg. At 11.11 am IST, the silver contract traded down Rs 126 at Rs 19,835/kg.

(With inputs from Dow Jones Newswire)