Gold prices closed lower for a third straight session as the dollar amid hopes government plans to help the struggling economy will reduce the metal's hedge appeal.
April gold finished the session at $923.80, down $28.70 for the session. Prices touched as low as $920.00 earlier in the day.
The dollar firmed up a bit versus the euro Tuesday, rising slightly away from a 10-week low. The greenback extended its gains from the previous session versus the yen, paring more of its losses from last week, but continued to weaken versus the pound.
Stocks gained some steam at the close of Fed Chairman Bernanke's and Treasury Secretary Geithner's appearance before the House Financial Services Committee. After the massive uproar over bonuses at troubled insurer AIG, Bernanke and Geithner discussed the $200 billion rescue of AIG in front of Congress.
In prepared remarks, Bernanke reiterated the rescue was necessary to prevent a 1930s style meltdown, but added the recently-disclosed bonuses given to AIG executives were highly inappropriate.
Crude oil prices also saw some weakness on Tuesday, albeit modest. Light sweet crude lost 18 cents to close at $53.98 per barrel.
Gold closed 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.
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