Futures Pros – Gold futures were down for the second day on Tuesday, hitting a three-day low after the International Monetary Fund cut its 2011 growth outlook for the U.S. and as crude oil prices retreated, easing fears over inflation. On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,460.45 a troy ounce during European morning trade, shedding 0.28%. It earlier fell to USD1,454.85 a troy ounce, the lowest price since April 7. The International Monetary Fund on Monday cut its 2011 growth outlook for the U.S. to 2.8%, down from January’s forecast of 3%. The IMF also lowered its growth forecast for Japan’s economy to 1.4% from a previous estimate of 1.6%, citing the impact of the nation’s devastating March 11 earthquake and tsunami. Meanwhile, crude futures for delivery in May fell below USD107 a barrel, while Brent oil retreated from a 31-month high to dip below USD121.50, reducing inflationary pressures. Gold prices were also subject to further profit-taking after Goldman Sachs advised investors to “lock-in trading profits before the precious metal market reverses”. In a report released late Monday, the lender said that a “broader correction of gold prices seems to be needed” and that the “risks outweigh any further potential gain.” Despite the pullback, gold prices were expected to remain supported amid simmering turmoil in the Middle East and North Africa and lingering fears over Japan’s nuclear crisis. Elsewhere, silver for May delivery slipped 0.26% to trade at USD40.23 a troy ounce, while copper for May delivery shed 0.25% to trade at USD4.448 a pound during European morning trade.

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