Daily Gold Update

Source: MarketWatch

New York— Gold futures fell for a second session Tuesday, ending below $900 an ounce as traders sold the metal and other commodities to raise cash amid growing concerns over the health of major U.S. banks and the potential impact of the swine flu outbreak. The Federal Reserve is pressuring Citigroup Inc. and Bank of America Corp. to raise more capital, The Wall Street Journal reported. Meanwhile, General Motors Corp. outlined a new turnaround plan that would leave the U.S. government controlling the automaker.

"Cash conservation seems to be foremost in traders' minds," said George Gero, a precious-metals trader for RBC Capital Markets. "Sellers in gold, crude, and copper appeared from funds interested in raising cash, concerned with swine flu hurting economies and more uncertain outcome of automobile bailouts." The World Health Organization raised its swine-flu threat level Tuesday, which now stands just two steps short of a full pandemic. The WHO also said it was now too late to contain the virus. Economists said a severe outbreak would amplify the global economic downturn. MarketWatchSee full story.