Gold prices plunged on Tuesday as weakness in crude oil prices and strength in greenback rekindled selling interest in the yellow metal. Gold for April delivery shed $11.80 during the session and closed at $661 an ounce on the New York Mercantile Exchange. The greenback rose against the yen, reflecting growing expectations that even if the Bank of Japan lifts interest rates, Japanese interest rates are likely to remain at relatively low levels. Currently the interest rate in Japan stands at 0.25%. Today’s inflation data would be crucial for the fate of the currency. Consumer demand for gold in Saudi Arabia turned bleak in 2006 with 20% decline in tonnage terms compared to 2005 results. However, demand jumped 15% higher in the last quarter of the year. The outlook for 2007 gold demand in the region looks promising, according to WGC report. | TUG-OF-WAR: Bulls vs. Bears |