Gold prices were falling steadily late Tuesday in electronic trading as investors took profit from recent gains and bought stocks in expectations that the Federal Reserve will intervene in the bond market to give the anemic U.S. economy a lift.

Gold for December delivery, the most actively traded contract on the CME Comex of the New York Mercantile Exchange, fell 1.73 percent from its closing price earlier Tuesday to 1,829.20 per ounce. Spot gold fell to $1,830.70.

Silver fell less than 1 percent to $41.97 per ounce.

Independent investor Dennis Gartman, who has long been bullish on gold priced in non-U.S. currencies, told Reuters he was reducing his long positions on gold priced in euro and sterling terms.

Perhaps things have become a bit too frothy and reduced rather than increased exposure seems reasonable and wise, Gartman said.

Gartman said gold's rally was not sustainable after SPDR Gold Trust's total assets surpassed that of the SPDR S&P 500 ETF , making GLD the largest exchange-traded fund in the world for the first time.