Gold prices fall as investors become more comfortable with the short-term outlook for the euro

Gold dips as investors return to currencies

NEW YORK — Gold prices are sliding as investors become more comfortable with the short-term outlook for the euro.

Traders are jumping back into riskier assets like stocks and currencies in recent days, hurting the price of gold.

Analysts say the recent trend of selling euros and buying gold is reversing. In recent months, investors had been selling euros rapidly because of worries that mounting sovereign debt in countries like Greece, Spain and Portugal would halt an economic recovery in Europe.

Gold for August delivery is down $2.80 at $1,196.10 an ounce in afternoon trading Thursday. The price of gold has dropped nearly 5 percent over the past two weeks.