Gold prices continued to plunge on Tuesday as improving global stocks reduced the need for the hedge investment. A negative close would be the third straight for the metal.
April gold fell to $920.60, down $31.90 on the session. The metal touched as low as $919.70 in the opening moments of trading.
While there are no major economic reports due to be released Tuesday, it will be a busy day on Capitol Hill. Fed Chairman Ben Bernanke and Treasury Secretary Tim Geithner will appear before a House Financial Services Committee hearing on the government's role in saving AIG, which has been propped up to the tune of nearly $200 billion dollars in taxpayer money.
The AIG hearing is set to kick off at 10 am ET, the same time that FDIC head Sheila Bair will testify at a Senate Banking Committee hearing on bank regulation.
The dollar remained on the defensive versus the resurgent sterling but was steady against most other majors Tuesday morning in New York. With the Dow Jones Industrial Average at its highest level in more than a month, higher-yielding currencies have seen renewed buying interest.
Gold is lower for the sixth time in seven sessions. The one gain, however, was the $68.70 surge on Thursday amid worries of inflation after the Federal Reserve's plan to buy as much as $1.15 trillion in bonds was revealed the day before.
For comments and feedback: contact firstname.lastname@example.org