MW: Gold futures slump as Bernanke talk lifts dollar
Gold futures fell on Friday, after reaching new record highs in the previous session, after Federal Reserve Chairman Ben Bernanke said loose monetary policy will end eventually.
Gold for October delivery was last down $6.50, or 0.6%, at $1,048.90 an ounce. On Thursday, the contract rose as high as $1,060.40 an ounce, the highest ever for a front-month contract.
December gold was down $7.10, or 0.7%, to $1,049.20 an ounce.
Thursday's gains came as the dollar gave back ground in currency trading, under renewed pressure as the European Central Bank and the Bank of England made no changes in their respective interest-rate policies.
But on Friday, the dollar firmed after Bernanke said the central bank will tighten monetary policy when the economic outlook shows sufficient improvement.
The dollar index (DXY 76.26, +0.30, +0.39%) , which measures the U.S. unit against a basket of six major currencies, stood at 76.19, up from 75.917 late Thursday.
A stronger dollar tends to pressure the price of gold, reducing its appeal as an alternative investment.
