Bullion loses value following Fed chief testimony

Gold prices were diving in value on Thursday in the aftermath of U.S. Federal Reserve chief Benjamin Bernanke not committing to additional intervention when testifying on Capitol Hill, The Wall Street Journal reports.

The yellowish metal sank lower than the psychological price of $1,600 per troy ounce as the U.S. dollar strengthened as they two typically perform the inverse of one another. The losses come one day after bullion touched its top value in one month. The precious metal may climb in value following the deployment of easing programs due to investors seeking to protect their wealth against losses to monetary units.

"I don't think we're going to get a lot of clarity on Fed actions here today, so I think gold is reflecting that disappointment," broker Frank Lesh with FuturePath Trading told the news source on Thursday.

At 2:20 p.m. on Thursday, gold prices fell 2.62 percent, a $42.80 loss to $1,591.40 per troy ounce.

Bernanke told lawmakers on the Joint Economic Committee that the body he leads is poised to preserve the integrity of the U.S. economic system should "financial stresses escalate," according to Bloomberg.