Special Report: Global Financial Crisis

    CHICAGO, Fed. 25 (Xinhua) -- Gold market in New York saw a volatile trade Wednesday that ultimately left the metal suffering losses. Gold futures for April delivery fell 3.30 dollars, or 0.3 percent, to 966.20 dollars an ounce on the New York Mercantile Exchange.

    The market started the session off weak as investors continued to take profits after the metal's rally stalled out last week above the 1,000 dollars an ounce level. A report with an unexpected sharp fall of U.S. existing home sales triggered fresh safe haven buying in gold, which pushed the prices into positive territory.

    But into mid-session the gold market started to retreat as Federal Reserve chairman Ben Bernanke reiterated that banks need not to be nationalized, which eased the anxiety and helped equity markets to pare losses.

    World Gold Council indicated gold is the most favored investment tool this year compared to other asset classes. It reported that identifiable investment demand for gold, which incorporates exchange traded funds (ETFs) and bars and coins, was 64 percent higher in 2008 than in 2007.

    A decline in gold prices may be an opportunity to buy.