This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gold Dips Despite Dovish Bernanke Testimony

Updated from 9:28 a.m. EDT with settlement prices

NEW YORK ( TheStreet) -- Gold prices closed lower in a choppy session on Wednesday as Federal Reserve Chairman Ben Bernanke's testimony to Washington lawmakers reiterated the central bank's commitment to an accommodative monetary policy.

Gold for August delivery at the COMEX division of the New York Mercantile Exchange lost $12.90 to settle at $1,277.50 an ounce. The gold price traded as high as $1,299.70 and as low as $1,269.30, while the spot price was slipping $15.47.

"Natural profit taking came as Mr. Bernanke did not offer anything new or unexpected for gold to be able to continue a rally," George Gero, precious metals strategist at RBC Capital Markets, wrote in a note on Wednesday.

Bernanke on Wednesday answered questions from the House Financial Services Committee, and is slated to testify in front of the U.S. Senate on Thursday.

In his prepared speech, Bernanke said the pace of the Fed's bond purchases are not on a pre-set course, and that the Fed may begin to taper its monetary stimulus in 2013 and possibly end in 2014.

These statements are not new from the Fed chairman, but they do leave open the possibility that the central bank has not set a hard date to scale back on its asset purchases.

Additionally, Bernanke's testimony said the labor market is improving gradually, but that it is far from satisfactory. Bernanke said that risks to the economy have eased since the fall of 2012.

The Fed will retain on its balance sheet the mortgage-backed securities and longer-term Treasuries purchased in its quantitative easing programs even after the bank ends stimulus. Bernanke will not give a hard date as to when the Fed expects to unwind its position in those assets.

Silver prices declined 52 cents on Wednesday as the September contract closed at $19.42 an ounce, while the U.S. dollar index increased 0.15% to $82.64.

-- Written by Joe Deaux in New York.

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SGOL $124.34 -0.33%
GLD $121.71 -0.41%
IAU $12.29 -0.57%
AAPL $92.75 -0.93%
FB $117.84 -0.19%


Chart of I:DJI
DOW 17,659.93 +8.67 0.05%
S&P 500 2,055.29 +4.17 0.20%
NASDAQ 4,734.0610 +8.4220 0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs