NEW YORK: In a surprising development, gold futures plunged Tuesday while almost all other commodities gained over US Fed s decision to cut lending rate.
Most of the other prominent futures rose broadly, with crude oil, copper and agriculture futures all trading higher.
Gold for April delivery rose $1.70 to settle at $1,004.30 on the New York Mercantile Exchange but pulled back nearly $25 after the Fed's decision. The metal fetched $978.20 an ounce in aftermarket trading, down $24.40.
Though some analysts warn gold is due for a correction, others say it could still move higher first due to economic worries, record high crude prices and a tumbling dollar.
Gold is traditionally viewed as safe haven investment during times of economic uncertainty and rising inflation.
Other precious metals traded mixed Tuesday. Silver for May delivery fell 34 cents to settle at $19.96 an ounce on the Nymex, while May copper added 6.15 cents to settle at $3.7465 a pound.