Tuesday testimony of U.S. Federal Reserve chair Ben Bernanke helped pull down the price of gold futures as the chief stopped short of committing to intervene, which emboldened the U.S. dollar, Reuters reports.
Immediately after his prepared remarks were released, the yellowish metal slipped 1 percent. He said only that the central bank is prepared to act but he did not say it actually would on his first day of testifying before the U.S. Senate Banking Committee. He is slated to return to Capitol Hill on Wednesday for more testimony.
"Every time we are told that the Fed is not announcing any new measures, gold comes under pressure," chief investment strategist Michael Gayedwith Pension Partners of New York told Bloomberg.
At 1:56 p.m. on Tuesday, gold futures fell 0.2 percent, a $3.20 dip to $1,588.40 per troy ounce.
When the central bank preserved expenses and costs for borrowing at record lows while also buying $2.3 trillion-worth of debt during two rounds of quantitative easing from December 2008 through June 2011, bullion skyrocketed 70 pBloomberg reports.