Gold and silver futures reduced their losses Wednesday
Gold and silver futures reduced their losses Wednesday as the euro bounced from its lows.
Early in the day, the metals had been down on position squaring and profit taking ahead of congressional testimony from U.S. Federal Reserve Chairman Alan Greenspan. Gold had extended its losses when some of Greenspan's remarks were construed as bullish for the economy, thus helping the dollar.
April gold slipped just 40 cents for the day at $426.90 on the Comex division of NUMEX, well up from an earlier low of $423.40.
The dollar firmed against the Japanese yen overnight after news that Japan's economy contracted slightly in the fourth quarter. That, along with long liquidation, resulted in a weaker open for the metals.