Daily Gold Update

Source: Marketwatch

New York— Gold prices fell for a third day on Wednesday, continuing their slide from a one-month high after Federal Reserve Chairman Ben Bernanke told lawmakers the economic recovery is not yet sustainable and interest rates are likely to remain low for an extended period. Still, investors remain focused on the likelihood that the Fed will remove its accommodative low interest policy as it deems necessary. "Maybe he won't hike rates now, but there will be rate hikes in some other way," said George Gero, vice president of global futures at RBC Capital Markets. "They have a lot of different tools. That made people think twice" and sell in the last few days.

Gold for April delivery rose into positive territory just after Bernanke began, touching $1,108.80. It ended down by $6, or 0.5%, to $1,097.20 an ounce. Bernanke repeated that the Fed is prepared to exit its ultra-low monetary policy when a sustainable recovery is apparent, and that it has the tools necessary to take those steps, besides raising the target federal funds rate, which is the target overnight lending rate between banks. See full story.