Gold Prices Fall Ahead of Key Data
Source: TheStreet, Andrea Tse (7/19/10)
"Gold prices edge lower; investors fear possible deflationary pressures"
The yellow metal, which is often used as an inflationary hedge, was falling by $1.80 to $1,186.40 an ounce for August delivery on the Comex division of the New York Mercantile Exchange. The gold price Monday has traded as high as $1,194.70 and as a low as $1,185.60. The U.S. dollar index was relatively flat at $82.55. The spot gold price was falling more than $9.
Gold prices are lower also as investors wait for results of stress tests of EU banks. This data is set to come out on Friday. They'll also be focusing on key economic events such as Fed chairman Ben Bernanke's testimony on monetary policy Wednesday in front of the Senate Banking Committee, as well as the House Financial Services Committee on Thursday.
Silver prices were trading sideways at $17.78, while copper prices were at $2.94.
Gold mining stocks, a more risky but profitable way to invest in gold, were mostly lower Monday.