Mumbai Tracking sharp overnight rise in the US bullion futures; gold and silver futures were trading slightly higher amid short covering during early trade on the Multi Commodity Exchange (MCX) Wednesday. While December gold gained Rs 32/10gm; December silver traded up Rs 127/kg.

Spot gold trades off intraday high USD889/oz on profit taking but flight to safety continues, says Adrian Koh, analyst with Phillip Futures in Singapore, Wednesday. "There's still safe-haven demand for gold, looking at the slide on stock markets, though there is some profit taking, especially after the move on Monday," he says. Spot gold was last bid at USD881.50, down USD5.60 against New York close.

Gold futures shined for the second straight session Tuesday as market participants continued turning to it as a safe haven because of ongoing worries about the global financial system, analysts said. December gold gained USD15.80 to USD882 an ounce on the Comex division of the New York Mercantile Exchange. December silver added 9.5 cents to USD11.38.

MCX benchmark December gold contract opened up Rs 47 at Rs 13,560/10gm. The contract fluctuated between Rs 13,527 and Rs 13,575/10gm. At 10.06 am IST, the contract traded up Rs 32 at Rs 13,545/10gm.

MCX benchmark December silver opened up Rs 42 at Rs 19,294/kg. The contract tossed between Rs 19,294 and Rs 19,434/kg. At 10.07 am IST, the silver contract traded up Rs 127 at Rs 19,379/kg.

(With inputs from Dow Jones Newswire)