Gold Commodity Prices losing 2 US dollars at Index

Gold commodity price traded as high as $1,251 and as low as $1,242.30 during Monday's session. The U.S. dollar index was losing 1.15% to $81.92 while the euro was up 1.48% to $1.28 vs. the dollar. The spot gold price Monday was losing more than $2, according to Kitco.

Gold prices are looking rangebound until a catalyst can push them either past their record intraday high of $1,266 an ounce or below their $1,240 support area. Prices fell 0.32% last week but did manage a record close of $1,259 an ounce. Investors were also cheered by the report that China's industrial production grew 13.9% in August from a year earlier. Economists anticipated that China will grow 10% in 2010, but many analysts were worried China could slow from that level. China is credited with leading the global economic recovery with its strong housing market and demand for raw material. Any slowdown would be felt in exports across the globe. The data was encourging and also led investors away from the safety of gold.

Commodity of Gold for December delivery closed 60 cents higher at $1,247.10 an ounce at the Comex division of the New York Mercantile Exchange.Risk appetite improved modestly Monday, which was no help to gold prices, as Basel III financial reform buoyed stocks. Although the reform must still be ratified by the Group of 20 wealthy nations, global big banks will have six years starting in 2013 to increase their Tier 1 capital ratios to 7% from 4%.