Daily Gold Update

Source: Marketwatch

New York— Gold futures edged down Tuesday, pulling back from a five-week high, as Federal Reserve Chairman Ben Bernanke's testimony to Congress seemed to reduce inflation worries and boosted the U.S. dollar. August gold futures slid $1.90, or 0.2%, to end at $946.90 an ounce on the Comex division of the New York Mercantile Exchange. It rose to $953.80 earlier. The contract ended Monday's trading at the highest level since June 11. As Democrats work to push a climate change bill through the Senate, all eyes are on this controversial approach to combating global warming.

Interest rates must stay at historically low levels for the economy to get out of the ditch, but it is not too early to discuss how the Fed will transition toward more of a normal policy on rates once the economy is back on track, Bernanke said. "In light of the substantial economic slack and limited inflation pressures, monetary policy remains focused on fostering economic recovery," Bernanke told the House Financial Affairs Committee in his biannual report on monetary policy. He reassured that the "extraordinary" monetary policy "can be withdrawn in a smooth and timely manner as needed, thereby avoiding the risk that policy stimulus could lead to a future rise in inflation." See full story.