Futures Pros – Gold futures declined for a third day on Tuesday as a firmer U.S. dollar weighed and as investors booked profits ahead of a key Federal Reserve policy meeting later in the week. On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,503.75 a troy ounce during European morning trade, slipping 0.2%. It earlier fell to USD1,495.95 a troy ounce, the lowest price since April 20. The dollar found support after European Central Bank Governor Jean-Claude Trichet said he “entirely” shared the U.S.’s view that a strong dollar is in the U.S. interest. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.12% to hit 74.31. 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, traders awaited a policy announcement from the Fed on Wednesday as well as comments from Fed chair Ben Bernanke for clues as to whether the central bank would end its bond-buying program in June. Despite the pullback, gold prices were expected to remain well-supported amid ongoing concerns over inflation, lingering worries over the debt crisis in the euro zone and escalating violence in the Middle East and North Africa. Elsewhere, silver for July delivery tumbled 2% to trade at a four-day low of USD45.91 a troy ounce, while copper for July delivery dipped 0.5% to trade at USD4.295 a pound during European morning trade. Silver futures rose to a 31-year high of USD49.82 an ounce during Monday’s session, approximately 1.1% away from the all-time high of USD50.35 an ounce it reached on January 18, 1980.

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