GOLD NEAR UNCHANGED AHEAD OF BERNANKE COMMENTS

Gold prices are near unchanged on the New York Spot Market as of 2:04 p.m. EST as traders look towards Federal Reserve Chief Ben Bernanke’s scheduled testimony to congress on the state of the U.S. economic recovery. Mr. Bernanke is expected to testify that the economy is not improving as quickly as previously thought, which may lead to further easing of monetary policy to ignite growth in the U.S. like buying mortgage-backed securities or more government debt.

Stocks are down on the New York Stock Exchange as investors digest mixed earning data and anticipate a discouraging report from Ben Bernanke to congress on the U.S. economy. Traders have been concerned in recent days of the possibility of a double-dip recession. Later today, President Obama is expected to sign new sweeping financial reform into law, which aims to prevent a future financial crisis.

From Reuters, respondents to a poll of 55 analysts, traders and fund managers said they see gold prices posting an eleventh year of gains in 2011 as investors seek refuge from an uncertain global economic outlook. "The market is expected to derive strength from further economic pitfalls and the near-zero interest rates maintained by the U.S. Federal Reserve," said Harish Galipelli, head of commodity research at JRG Wealth Management. The poll showed expectations for gold prices in 2011 have risen by nearly 7 percent to a median $1,228 an ounce. (Reuters, 7/20/10)