Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures closed with a more than $7-an-ounce loss Tuesday, pressured by strength in the U.S. dollar as traders left their defensive shells and mulled the latest developments in Libya. Reports that Libyan leader Moammar Gadhafi may be discussing a deal with opposition members to step down, �did soften things overnight and the metals have had a hard time recovering,� said Charles Nedoss, senior market strategist with Olympus Futures in Chicago. �The dollar strength isn�t helping either,� he said. Gold for April delivery closed $7.30, or 0.5%, lower to finish at $1,427.20 an ounce on the Comex division of the New York Mercantile Exchange. The metal closed at $1,434.50 an ounce on Monday after it reached an intraday high past $1,445 an ounce.

Silver tracked gold lower, leaving a three-decade best. A spokesman with Libya�s opposition forces had said Gadhafi was trying to negotiate his resignation and safe departure from the North African country, according to media reports early Tuesday. �Expectations of more disruptive political upheaval had pushed gold higher,� said Ned Schmidt, editor of the Value View Gold Report. �Those expectations had become too radical and with calming in Middle East, those expectations could not be met.� See full story.