We perform self-consistent linear-muffin-tin-orbital calculations with
the atomic-sphere approximation (LMTO-ASA) within density functional
theory, for Gd bulk and its (0001) surface, using the local spin densi
ty approximation (LSDA). We treat the 4f electrons as intinerant band-
states which has been found important for the realistic description of
bulk Gd. From our calculation the antiferromagnetic coupling of the s
urface with the bulk magnetic moment emerges energetically favourable
to a ferromagnetic one. Analysing these results further, we find - in
contradiction to experiment - that this antiferromagnetic order is alr
eady favoured in bulk Gd. Our results indicate that LSDA leads to the
wrong magnetic ground state for gadolinium.