As Ben Bernanke, chief of the U.S. Federal Reserve, prepares to deliver two days of congressional testimony beginning on Tuesday, the yellowish metal is hovering at prices lower than the psychological threshold of $1,600 per troy ounce. Gains from this past Friday, the strongest in more than seven days, were being eclipsed by the Monday performance.
"The options market is skewed to the downside with a retesting of the $1,526-$1,500 levels," analyst Bayram Dincer with LGT Capital Management told Reuters. "Gold still has good value under certain conditions, but there is this correlation to the equities market, and some profit taking there can spill over into weaker gold prices. We are lacking driving forces for the time being, and gold is stagnating."
At 10:07 a.m. on Monday, gold futures dropped 0.24 percent, a $3.80 slip to $1,588.20 per troy ounce.
The aggressive nature of the sovereign debt scourge is benefiting the value of the dollar, which performs the inverse of the yellowish metal, according to Bloomberg.
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