Mumbai Tracking upward movement in spot gold in Asian market; gold and silver futures opened positive on the Multi Commodity Exchange (MCX) and traded up with sizeable gains during initial hours of session on Friday. While October gold added Rs 91/10gm; December silver traded up Rs 122/kg.

Macquarie Research cuts its 2008 and 2009 gold price forecasts by 6.6 per cent and 8.6 per cent, to USD883/oz and USD960/oz respectively; but raises its long-term gold price forecast by 17 per cent to USD700/oz. Spot gold last traded at USD877.50/oz, up USD1.70 since New York close.

Gold futures fell sharply Thursday in options-related activity and as the market unwound some of the recent safe-haven buying while equities soared, analysts said. Still, the worries about the financial sector persist and could mean further gains down the road, they added. December gold lost USD13 to USD882 an ounce on the Comex division of the New York Mercantile Exchange. December silver fell 16.5 cents to USD13.275.

MCX October gold contract opened up Rs 46 at Rs 12,960/10gm. The contract fluctuated between Rs 12,960 and Rs 13,051/10gm. At 11.02 am IST, the contract traded up Rs 91 at Rs 13,005/10gm.

MCX December silver opened up Rs 69 at Rs 20,770/kg. The contract tossed between Rs 20,770 and Rs 20,893/kg. At 11.03 am IST, the silver contract traded up Rs 122 at Rs 20,823/kg.

(With inputs from Dow Jones Newswire)