Gold prices fall on decreased demand

Precious metals prices fell on Tuesday, with gold lower as demand for bullion from key buyer India fell.

April gold dropped $16.20 to $910.50 per troy ounce near the close of floor trade in New York, while March silver fell 22 cents to $17.25 per troy ounce and April platinum fell from record highs as it dropped $24.40 to $1,915 per troy ounce.

Meanwhile, March copper gained less than half a cent to $3.56 per pound and three-month copper in London was up $80 to $7,845 per tonne, or $3.56 per pound on continuing supply worries.

Crude oil prices fell on Tuesday on a report from the US Energy Information Administration that oil demand and prices will not grow as much as previously expected this year and in anticipation of tomorrow’s weekly EIA oil inventories report, which is likely to say that crude oil and gasoline stockpiles grew in the US last week.

Prices were also pushed downward by the general opinion that it is unlikely that Venezuelan President Hugo Chavez will carry through on his threat to cut off oil sales to the United States.

West Texas Intermediate crude for March delivery dropped 81 cents on the session to $92.78 per barrel on the New York Mercantile Exchange.

Nymex March gasoline was 3 cents lower to $2.37 per gallon, while March heating oil dropped 1 cent to $2.59 per gallon.

Grains prices fell again, with wheat down on the possibility that farmers could plant more crops after recent price gains.

March wheat on the Chicago Board of Trade was 41 cents lower to $10.07 per bushel, while May CBOT contracts dropped 60 cents, the exchanged-imposed limit, to $10.25 per bushel.

CBOT March soybeans were down 5 cents to $13.22 per bushel, while CBOT March corn fell 5.25 cents to $4.97 per bushel.

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