COMEX Gold futures eased to a 10-day low today before edging up in London trades as the risk appetite improved after a much-awaited Italian bond auction showed a sharp drop in yields. The overall price action in world markets remained mostly dull ahead of the year-end and Gold bulls kept on sidelines given that the metal reels under $1600 per ounce mark. The commodity dropped in Asian trades as the US dollar firmed up. US markets closed flat yesterday as better-than-expected data on consumer confidence, which hit an eight-month high in December, was offset by news US single-family home prices fell slightly more than expected in October, according to S&P/Case-Shiller data. Asian shares molsy fell in low volume and pulled gold under $1590 per ounce. The metal dropped further in Europe, testing lows of $1583 per ounce before rising nearly 10 dollars in intraday moves on the Italy bond auction. US dollar also eased a bit after the auction, currently quoting at 1.3070 against the Euro. COMEX Gold quotes at $1591.30, down $4.20 per ounce on the day. MCX Gold futures, however, went up in Asian trades, bouncing from a low near 27600 per 10-gram levels as the Indian Rupee dropped to its one week low, breaking above 53 mark on weakness in local equities. MCX futures pulled off from highs of Rs. 27720 per 10 grams and currently quote at Rs. 27633, down Rs. 18 on the day. The INR also gained back under 53 mark on suspected RBI intervention. Prices could fall in evenings once the counter breaks under Rs. 27600 mark though the losses are likely to be slim.

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