MCX Gold futures dropped yet again as global prices witnessed a steep correction. The COMEX Gold futures slipped towards three month low, giving up on reports that US lawmakers are getting closer to end a stalemate on raising the debt ceiling. Such a deal would ensure that the US government is able to borrow more to finance its budget deficit and markets are viewing it as a negative development for Gold. The metal has been facing difficulties in hold up amid chaotic news flow off late and quickly gave up the moderate gains today and test a fresh three month low of $1251 per ounce. The counter currently quotes at $1258.30, down $18.30 per ounce on the day. Gold held up in Asian trades but dropped like a rock as the US dollar rallied in the afternoon. Dollar is quoting around 1.3491, a fresh two week high against the Euro on signs of a debt deal in the US. This pulled the Indian Rupee down in the local markets. Rupee slipped towards 61.80 per US dollar levels- shedding nearly half a percent against the greenback. Rupee has been weakening after hitting its two-month high last week. Gold is facing selling even as world economic conditions remain skeptical. The global economic growth is still in low gear and the drivers of growth are shifting, says the IMFs latest World Economic Outlook (WEO) report released last week The IMF forecasts global growth to average 2.9% in 2013ï¿½below the 3.2% recorded in 2012ï¿½and to edge up to 3.6% in 2014. Much of the pickup in growth is likely to be driven by advanced economies. In key economic news today, the UK inflation remained at 2.7% in September on an annual basis for consumer prices. Official figures showed annual consumer price inflation was unchanged from August after upward pressure from airfares was countered by a fall in petrol and diesel prices. Air fares always fall between August and September, but this year they fell by 18.7% compared with the 25.2% decline recorded a year ago, according to the Office for National Statistics (ONS). The Reserve Bank Of Australia (RBA) has kept the door open for another interest rate cut, but is prepared to wait for a few more months as it monitors new data amid continued below-trend growth in the economy. The central banks board members said they would keep a close watch on the results of economic data over the next few months to determine the success of the current easing cycle, which has seen the cash rate lowered to a record 2.5 per cent, the RBA board minutes released this morning showed. In local markets, good demand is seen as spot prices linger around Rs 30000 per 10-gram levels. Not much of a drop is emerging in prices despite the volatility in global market as festive season ensures that retail inquiries remain good. MCX Gold futures for December are trading at Rs 28535, down Rs 263 or 0.90% on the day. Prices slipped to a low under Rs 28400 earlier in the day.