Updated from 10:19 a.m. EDT with settlement prices
Gold for August delivery settled down $18.70 to $1570.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1585.70 and as low as $1567.20 an ounce, while the spot price was dipping $5.30, according to Kitco's gold index.
"We're seeing things drop off again this morning, maybe the realization that there's just not going to be anything for the markets there at least now, I think we're too close to an election, because anything that [Ben] Bernanke does now could be viewed as political," said Chuck Butler, president of world markets at EverBank.Silver prices for September delivery settled down 22 cents to $27.10 an ounce, while the U.S. dollar index was up 0.04% at $83.06. The Fed chairman will testify Wednesday to the House Financial Services Committee, a day after he testified to the Senate on Capitol Hill. Gold had a roller-coaster trading session on Tuesday as investors hoped for QE3 signals from Bernanke ahead of his testimony. The yellow metal sold off as it became clear that the Fed chairman wouldn't budge on possible central bank action. "I think the market seems to have sort of unrealistic expectations sometimes of what Bernanke is going to be doing," said Adrian Day, president of Adrian Day Asset Management. "I think we're just going to see a little more of [the same] until we get into September, absent any real action on the part of the Fed." Gold's dip on Wednesday showed a lack of confidence that Bernanke would make a surprise announcement for any immediate inflationary policy at his House hearing. Additionally, no more economic data was expected Wednesday to develop in European and emerging markets. Conditions don't seem to merit a big swing one way or the other, which means that gold will be stuck in the same trading range for at least the short-term. "He [Bernanke] keeps saying that [the Fed] stands ready to do something should the economy weaken; I don't know how much weaker it can get," said Butler. Gold mining stocks were lower Wednesday. Goldcorp (GG) led the sector lower at $32.60, down $1.05, or 3.1%. Among other mining stocks, Barrick Gold (ABX) and Newmont Mining (NEM) were down 0.7% and 0.82%, respectively. Kinross Gold (KGC) and Yamana Gold (AUY) were sliding 1.5% and 2.8%, respectively. -- Written by Joe Deaux in New York. >Contact by Email. Follow @JoeDeaux
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