Daily Gold Update

Source: MarketWatch

New York— Gold futures dropped sharply Tuesday, as traders locked in recent gains after the metal's surge to a record high in the previous session. Gold for April delivery dropped $14 to $970.20 an ounce on the New York Mercantile Exchange.

Around 11 a.m. Eastern, "we had a huge liquidation coming into the market," said Zachary Oxman, a senior trader at Wisdom Financial. Around that time, there was a significant spike in volume of more than 3,700 contracts, which has spurred this decline, Oxman said. "I think you're seeing fund liquidation, which is bringing in more selling," he said. "I'd be careful [not] to start liquidating now because this looks more like a cash call type of liquidation, and I'd be adding to longs on this dip." See full story.