Futures Pros – Gold futures were down on Tuesday, declining for the first time in three days as mounting fears over Japan's escalating nuclear emergency sparked a selloff in equities and commodities. On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,416.25 a troy ounce during European morning trade, shedding 0.58%. It earlier fell to USD1,407.95 a troy ounce, the lowest price since March 11. Earlier in the day, Japan's Prime Minister Naoto Kan said there was a high risk of elevated levels of radiation from the Fukushima Dai-Ichi plant, following another explosion at the stricken plant, this time at its No. 4 reactor. Japan’s Nikkei 225 Index plunged 10.1% to close at a two-year low, while European markets posted sharp losses after the open, prompting investors to move into cash to cover losses. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.53% to hit 77.01 during European morning trade. A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies. Meanwhile, global financial service provider UBS raised its one-month gold forecast to USD1,450 a troy ounce, up from a previous estimate of USD1,375, based largely on the anticipated impact of the Japanese earthquake. The broker said in a report that the Japan quake had increased global uncertainty, resulting in a “breeding ground for higher gold prices in the near term.” Elsewhere, silver for May delivery tumbled 1.76% to trade at USD35.24 a troy ounce, while copper for May delivery dropped 1.49% to trade at USD4.157 a pound during European morning trade.

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