Daily Gold Update

Source: MarketWatch

New York— Gold futures edged higher Wednesday, after two sessions of sharp losses, with the dollar losing steam after Federal Reserve Chairman Ben Bernanke said the U.S. economy might contract in the first half of the year. Gold for June delivery gained $12.40, or 1.4%, to finish at $900.20 an ounce on the New York Mercantile Exchange. It earlier hit a high of $903 an ounce.

In testimony to Congress, Bernanke said that the outlook for U.S. economic growth has worsened since January and that the possibility of a recession can't be ruled out. "It now appears likely that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly," the top U.S. central banker said. The dollar index, which tracks the performance of the U.S. currency against other major currencies, was recently down 0.25% at 72.33. See full story.