Bernanke spooks gold again

After posting slight gains early Wednesday morning gold spot prices dropped back to $1,281 following a live broadcast of fiscal policy statements by Ben Bernanke, chairman of the Federal Reserve.Gold futures were also down to $1,282.9 for August purchase after making some headway in the early morning.

The precious metal spot price had hit nearly $1,300 after the release of the chairman's prepared remarks in which he emphasized that the future of asset purchases depended on economic conditions and not on any "preset course." These comments temporarily eased fears that quantitative easing could soon end, which would likely pull gold prices down.

The Fed's statements did not shed much light on what's ahead, with comments ranging from "the current pace of purchases could be maintained for longer” to "“the pace of asset purchases could be reduced somewhat more quickly,” Bloomberg reports.

Silver followed a similar course Wednesday morning, losing 1.57% to trade at $19.68.

Creative Commons image by: Charley