MW: Gold falls as investors await Bernanke testimony
By Anna Andrianova and Chris Oliver, MarketWatch
NEW YORK (MarketWatch) — Gold futures extended losses in Tuesday morning trade, as investors weighed prospects for monetary easing in comments due later from Federal Reserve Chairman Ben Bernanke.
Gold for August delivery GCQ2 -0.20% shed $5.2, or 0.3%, at $1,586.3 an ounce on the New York Mercantile Exchange.
Prices were stuck within a range between $1,588.70 and $1,595.80.
U.S. consumer prices were flat in June, with the higher cost of food offset by another decline in energy prices, the Labor Department said.
Howard Wen, commodities associate at HSBC Securities, said that the consumer-price data weighed on gold futures.
“The main story today is Bernanke’s testimony and if it is perceived as more dovish, then we can see a rally in gold,” Wen said.
Fed Chairman Bernanke is due to start two days of testimony to Congress later Tuesday. Investors are wondering whether the central-bank chief will hint at more stimulus measures for the weakening U.S. economy.
In other metals trading, silver for September delivery SIU2 -0.13% traded down 9 cents, or 0.3%, at $27.22 an ounce.
Anna Andrianova is a MarketWatch reporter, based in New York.
Chris Oliver is MarketWatch's Asia bureau chief, based in Hong Kong.
