Golden Star (AMEX:GSS) Eldorado (NYSE:EGO) Royal Gold (Nasdaq:RGLD) Allied Nevada (AMEX:ANV) All Fall on Weak Gold Prices

Golden Star Resources (AMEX:GSS) Eldorado Gold Corporation (NYSE:EGO) Royal Gold (Nasdaq:RGLD) Allied Nevada Gold (AMEX:ANV), along with the majority of the rest of the gold sector, have all fallen today as gold prices got hammered from the news the consumer price index in China came in higher than expected, reaching 4.4 percent.

Those traders and speculators holding long gold positions sold off their holdings in order to cover their margins, generating the plunge in the price of gold.

The worry is China may implement higher interest rates, pushing the price of gold down. That's a nod toward the increasing importance of the renminbi, or yuan, as a global currency.

It also shows investors are jittery as conflicting economic data and outlooks have them very unsure as to the direction things are going to go. That will still favor gold in the long term, and gold investors are more than happy to see gold prices fall so they can snatch up more of the yellow metal.

For Golden Star, they were trading at $4.55, dropping $0.17, or 3.60 percent as of 1:42 PM EST. Royal Gold was at $51.78, losing $0.84, or 1.60 percent. Allied Nevada Gold was at $27.31, falling $0.69, or 2.46 percent. Eldorado Gold Corporation was trading at $17.67, dropping $0.07, or 0.39 percent, slightly rebounding as the trading day goes on.