Gold Prices Fall on Rising Euro

The euro gained another temporary reprieve today, as it rose after the announcement industrial production in the European Union increased in April, somewhat relaxing concerns over the sovereign debt crisis expanding in the region.

Gold prices today consequently fell in response, dropping today by $9.40, to $1,218.10, as of 12:31 PM EDT.

“A lot of the risk trade has abated with a rally in the euro,” said Matt Zeman, a trader at LaSalle Futures Group in Chicago. “That’s the biggest reason to sell gold.”

So far in 2010, gold has increased by 12 percent, while the euro has dropped 15 percent against the U.S. dollar.