The price of gold closed sharply lower on Tuesday, extending its losing streak to seven. The metal ended the session at its lowest level in three weeks.
Gold for April delivery dropped to $913.60, down $26.40 for the day. The metal hit as low as $905.70.
The metal has lost nearly $90 since closing at an 11-month high of $1,002.20 on Feb. 20 as traders need to turn assets into cash to cover other losses. Gold is down $28.90 this week.
Traders watched closely as Federal Reserve Chairman Ben Bernanke testified before the Senate Budget Committee.
Bernanke told Congress it is critical that lawmakers balance the need for fiscal stimulus in the financial crisis with the long-term effects of budget deficits to achieve fiscal sustainability.
Later, Treasury Secretary Timothy Geithner cautioned Tuesday that the $700 billion allotted for his department's financial rescue program may not be enough, and that it is likely that the stabilization of the financial system will cost more.
On the economic front, NAR said its pending home sales index fell 7.7 percent to 80.4 in January from a downwardly revised reading of 87.1 in December. Economists had been expecting a much more modest decrease of about 3.5 percent.
The dollar experienced some strength on Tuesday in New York as traders turned to the safety appeal of lower-yielding currencies. The buck challenged a three-month high against the euro and lingered near a six-week bet against the pound.
