Gold Drops on Bernanke Testimony After Wide Price Swings
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Gold futures closed lower following wide prices swings as Federal Reserve Chairman Ben S. Bernanke signaled that U.S. monetary stimulus may be scaled back.
“If we see continued improvement, and we have confidence that is going to be sustained, we could in the next few meetings take a step down in our pace of purchases,” Bernanke said today in Washington in congressional testimony. Gold jumped as much as 2.6 percent to $1,413.30 an ounce after he said that withdrawing policy accommodation “at this juncture” would be “highly unlikely.”