Gold Prices Correct as Equities Pare Gains

The market's attention is now turning towards Friday's GDP figures, set to be released at 8:30 a.m.

Adrian Ash of BullionVault writes in his daily note that while physical gold investment in the continental European market has been quiet -- citing German-refinery Heraeus' head of sales, Wolfgang Wrzesniok-Rossbach -- demand in India has been quite strong over the past three days, according to a London dealer.

The World Gold Council said that in the second quarter, many assets, including global equities and commodities, experienced a period of pronounced volatility, in some instances surpassing levels seen during the first quarter of 2009.

The Council said that gold price volatility, however, remained much lower than many of these assets during the period, meaning that gold outperformed compared with the S&P 500 Total Return Index, the MSCI World ex US Index and S&P Goldman Sachs Commodities Index (S&P GSCI) on a risk-adjusted basis.

Silver prices were up 19 cents to $17.63 while copper prices was up 4 cents at $3.29.

Gold mining stocks, a more risky but more profitable way to invest in gold, were rising against the broader equities. Barrick Gold(ABX) was rising 1.4% to $40.57 while Yamana Gold(AUY) was increasing 0.5% to $9.26 and AngloGold Ashanti(AU) was rising by 0.2% to $39.79.

-- Reported by Andrea Tse in New York

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