Gold prices fell today after weak euro zone GDP data hit the euro, which declined against the US dollar.
Europe’s statistics agency Eurostat reported that the 17 nations that use the single currency saw their cumulative GDP contract 0.2 percent in the second quarter.
On a positive note, however, the euro zone’s two largest economic, Germany and France, topped growth forecasts during the period.
The German economy expanded 0.3 percent – compared with expectations of a 0.2 percent increase – and France’s GDP held steady, while analysts projected a contraction.
The euro fell slightly against the US dollar, which has an inverse relationship with gold.
The yellow metal was supported by today’s positive US retail sales data, which dented demand for the safe haven US dollar, trimming today's gains in the US dollar index to 0.1 percent.
The Commerce Department said sales jumped 0.8 percent, more than double the 0.3 percent growth forecast in a Bloomberg News survey.
Gold traded at US$1,601/oz this afternoon, down US$9 from Monday’s close. Silver fell two cents to US$27.81/oz, while platinum advanced US$16 to US$1,397/oz.
Today’s top risers in the sector were:
ECR Minerals (LON:ECR), up 23 percent at 0.793 pence at midday
Angel Mining (LON:ANGM), up 11 percent at 1.28 pence
Oxus Gold (LON:OXS), up 9 percent at 2.37 pence
The top fallers were:
Touchstone Gold (LON:TGL), down 16 percent at 11.12 pence at midday
SolGold (LON:SOLG), down 7 percent at 3.25 pence
Hummingbird Resources (LON:HUM), down 4.5 percent at 72 pence
