By Tatyana Shumsky NEW YORK--Gold prices pared earlier losses, moving to trade near flat, as the Japanese yen strengthened on reports that said the Group of Seven leading economies is actually concerned about the yen's decline over the past five months. Earlier, the G-7 had issued a statement affirming their commitment to market-determined exchange rates, after a leading U.S. Treasury official appeared to approve Japan's recent steps to weaken the yen and spark domestic inflation. However, reports by Reuters indicate the statement has been misinterpreted, and the G-7 is worried about Japan's measures. The news strengthened the yen, and sent gold prices higher. Gold is traded in dollars and becomes less expensive for investors who use other currencies to fund their purchases when their home currencies strengthen against the buck. Moreover, gold is considered a currency alternative, and investors tend to stock up on the yellow metal in times of uncertainty. The most actively traded contract, for April delivery, was recently trading down $1.50, or 0.1%, at $1,647.60 a troy ounce on the Comex division of the New York Mercantile Exchange. The contract shot up nearly $7 on the news, lunging into positive territory to touch $1,650.30. Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com

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