Gold yet again recovered from lows under $1600 per ounce and continued to move in tune with the risky assets. The commodity had dropped in the Asian trades but edged higher in London session and carved out decent gains after German Parliament approved buy a wide margin the plan to increase the Eurozone rescue fund, with investors relieved from concerns about German policymakers' voices showing opposition to change in the EFSF. Gold has been in a state of dilemma after the freakish drop to a three month low of near $1500 per ounce earlier in the week. The massive rush for cash witnessed at that time has eased slightly and an expected bout of surge in the Indian and Chinese demand has helped gold to cut losses from these levels. The COMEX futures are quoting at $1614.50, down $3.60 per ounce on the day. Prices are currently well under its 100 day EMA, which is placed at $1662 per ounce and would face resistance around this levels on every rally. MCX Gold futures dropped under Rs. 25500 per 10 grams but recovered soon. A part of the intraday fall could be explained by the fact that the expiry of the counter is just a week away and a lot of traders would be cuttings their existing position from this contract. The commodity was last seen quoting at Rs. 25661, down Rs. 12 on the day.

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