Gold Prices Treading Water Today On Better-Than-Expected Economic Data

The price of gold was under pressure today as investors' risk appetite resumed and they abandoned gold for equity. At the Comex division of the New York Mercantile Exchange (NYMEX), gold for August delivery fell $3.40 to $1,219.20 an ounce. Today, gold prices touched $1,226.50 at the higher end and $1,216.50 at the lower end. Up at $86.76, the US dollar index was marginally stronger, whereas the euro gained 0.01% to $1.22 versus the dollar. According to Kitco's gold index, the spot gold price has lost $6 so far today. In May, when the Dow Jones Industrial Average plummeted 8%, investors took the weakness in the market as a ‘bargain-hunting opportunity’ and used the profits realized from gold to invest in stocks. News about the private sector adding 55,000 jobs in May has also helped in improving the risk appetite of investors. Analyst James Moore of thebulliondesk.com said, "[Gold has] been confined to [a] narrow range so far this morning as consolidation is seen on the back of the improved risk appetite. But ... buying continues to been seen as investors look to diversify inflation and debt concerns ... Chart support for the moment is seen at $1212/1201 in gold ...while upside resistance is pegged at $1230/42/49.50." Among the gold mining stocks, which are a more risky and a more profitable way to invest in the yellow metal, Barrick Gold

was down 1.95% to $42.26 and Newmont Mining

had also lost 2.46% to $54.31 by 11:47 am. The other large gold miners include AngloGold Ashanti

, which dropped 1.33% to $42.26, and Goldcorp

, which plunged 2.56% to $43.03. Read more