(Updated for prices, analyst comments and gold stock reaction)NEW YORK ( TheStreet) -- Gold prices headed lower on Thursday, as investor appetite for stock returned and the euro strengthened. Gold for August delivery opened positively but declined by $1.3 to $1,197.6 at the Comex division of the New York Mercantile Exchange. It traded as high as $1,208 and as low as $1,187.The U.S. dollar index inched upwards, while the Euro strengthened by 0.27% against the dollar. Spot gold prices were heading lower by $7 on Thursday afternoon, according to Kitco's gold index. Trading interest in gold was tepid on Thursday as investors took to buying stocks on the back of better jobs numbers in the U.S. and earnings expectations. There was also positive news from the International Monetary Fund, which raised its 2010 global forecast to 4.6% from 4.1%, even as it warned that the European debt crisis could stall growth and cautioned governments to shore up confidence.