NEW YORK (MarketWatch) — Gold futures reversed earlier losses on Tuesday, as the dollar fell against major counterparts on bleak U.S. economic data, while traders reconsidered the importance of an expected sale of gold reserves by the International Monetary Fund.
Gold for April delivery gained $8.40 to end at $940.50 an ounce on the New York Mercantile Exchange.
Gold futures had fallen Monday after a senior Treasury official said the U.S. supports the proposed sale of part of the gold reserves held by the IMF.
“But there is an understanding that the IMF issue is minor at best,” said Brien Lundin, president at Jefferson Financial. “The sale still needs congressional approval, which remains doubtful, and the amount would be minor anyway.”
“In the past, IMF gold sales have typically marked a buying opportunity for people who had missed a rally,” Lundin said.