Gold prices were in decline today as the euro dropped against the US dollar after the ZEW institute reported weaker than expected German business confidence data. ZEW said that its business sentiment index dropped to minus-19.6 from minus-16.9 in June, missing forecasts and hitting the lowest level since January. The euro fell on the news, while the safe-haven US dollar climbed, reducing demand for gold, which is seen as an alternative investment to the greenback. Traders are now following Federal Reserve chairman Ben Bernanke’s testimony to the US Congress. Any indications that the Fed is mulling launching a third round of quantitative easing (QE3) would weaken the US dollar and boost gold’s appeal as an inflation hedge. Gold traded at US$1,581/oz this afternoon, down US$7 from Monday’s close. Other precious metals moved in the same direction with silver falling 26 cents to US$27.05/oz and platinum slipping US$4 to US$1,409/oz. Today’s top risers in the sector were: Orsu Metals (LON:OSU), up 34.5 percent at 8.25 pence at midday Triple Plate Junction (LON:TPJ), up 22 percent at 1.25 pence Condor Gold (LON:CNR), up 7.5 percent at 100.5 pence Medusa Mining (LON:MML), up 4.5 percent at 313.47 pence Centamin (LON:CEY), up 2 percent at 67.73 pence The top fallers were: SolGold (LON:SOLG), down 9.5 percent at 3.5 pence at midday Arian Silver (LON:AGQ), down 7 percent at 10.55 pence Norseman Gold (LON:NGL), down 6 percent at 3.41 pence Vatukoula Gold Mines (LON:VGM), down 5.5 percent at 30.71 pence Kolar Gold (LON:KGLD), down 4.5 percent at 7.75 pence

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