Futures Pros – Gold futures erased early losses on Wednesday, rebounding from a daily low, following the release of worse-than-expected U.S. data on consumer prices, building permits and housing starts. On the Comex division of the New York Mercantile Exchange, gold futures for December delivery rose to USD 1,342.45 a troy ounce during European afternoon trade, gaining 0.14%. It earlier fell to a daily low of USD 1,330.65 a troy ounce. Earlier in the day, official U.S. data showed that core consumer price inflation, which excludes food and energy costs was unexpectedly flat in October while CPI rose less-than-expected. Meanwhile, a separate report showed that building permits rose less-than-expected in October while housing starts fell more-than-expected. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, pared early gains and was down 0.30% during European afternoon trade. Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. Also Wednesday, the World Gold Council said that gold imports by India in the third quarter have already exceeded the total amount of gold imports in all of 2009, due to increased demand during the country’s festival and wedding season in October. Gold imports by India in the third quarter rose to 624 metric tons, compared with 559 metric tons the country imported in 2009. Jewelry demand in the country rose by 36% in the third quarter, as consumers purchased 184.5 tons of gold up from 135.2 tons a year earlier. India is the world’s largest buyer of gold jewelry. Elsewhere, silver for December jumped 1.05% to trade at USD 25.74 a troy ounce during European afternoon trade.

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