Daily Gold Update

Source: Marketwatch

New York— Gold futures ended sharply lower Tuesday, as traders sold the precious metal following its strong gains over the past few days. Gold for April delivery declined $15.60 at $911.10 an ounce on the New York Mercantile Exchange. Other metals prices also posted steep losses. The Group of Seven industrial nations approved over the weekend the sale of gold by the International Monetary Fund, according to media reports. The IMF is the third largest holder of gold in reserves after the U.S. Federal Reserve and the German central bank.

"We have a sharp decline in Indian demand, while investment demand has been robust in the wake of the string of bad news from the financial world over the past two months," said Jon Nadler, senior analyst at Kitco Bullion Dealers, in a research note. "In addition, the market now has to factor in the potential net supply increase from the upcoming IMF sales and weigh it against the decline that will result from mine output losses in South Africa," Nadler said. "With the credit crisis deepening, gold will be well supported on any pullbacks and will likely continue to surprise to the upside," said Mark O'Byrne, executive director at Gold and Silver Investments Ltd., in a note Tuesday. See full story.