Gold is quoting just under $1600 per ounce in the electronic moves, trying to stabilize after the massive correction in the last week. The equities are holding steady in Europe amid lack of any major negative economic developments and the death of North Korean leader Kim Jong-il is also keeping the yellow metal underpinned as a bounce from four month lows extends in the first session of the week. Gold slipped to its lowest levels in four months last week amid a very quick sell off as the prices tumbled under $1600 per ounce levels, tracking the weakness in equities and the rally in the US dollar. US dollar hit highs under 1.3000 against the Euro and pulled COMEX Gold to lows of $1560 per ounce. However, the commodity found a good support on these levels and edged up. is quoting above 1.3000 levels against the Euro in Asia as the gradually improving undertone in risk appetite curbed the safe haven demand for the currency. The US Consumer price index was unchanged in November and has grown at a 0.8 percent annualized rate over the last three months. Energy prices fell 1.6 percent last month — they are now below that of March of this year. COMEX Gold climbed Friday to break a four-session losing streak, but still ended with a loss of around 7% for the week. The counter tried to break above $1600 per ounce today but dropped in late Asian trades on dollar strength. The commodity is quoting at $1596.40, down $1.50 per ounce right now. MCX Gold futures for December are quoting at Rs. 27566, down Rs. 70 on the day after hitting a high of Rs. 27634 earlier in the session. The counter came within a striking distance of Rs. 27k before edging higher last week as a generous upshot on Friday pushed the prices above Rs. 27600 per 10 grams. The commodity could rise towards Rs. 2750 in case Rs. 27600 breaks on the up in the evening moves.

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