Futures Pros – Gold futures erased gains on Tuesday, retreating from a five-day high, as the U.S. dollar was broadly higher against its major rivals, but losses were limited amid ongoing concerns over the euro zone’s debt crisis. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,374.65 a troy ounce during early U.S. trade, shedding 0.04%. It earlier rose to USD1,386.55 a troy ounce, the highest price since January 4. Earlier in the day, the U.S. Census Bureau said that wholesale inventories fell by 0.2% in November, after increasing by a revised 1.7% in October. Analysts had expected U.S. wholesale inventories to increase by 1.3% in November. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.24% during early U.S. 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. However, losses were limited as markets remained focused on whether Portugal would be able to raise funds in the debt market on Wednesday or be forced to turn to the European Union and International Monetary Fund for a bailout. Global financial service provider UBS said in a report late Monday that, “European debt problems have once again taken center stage”, while adding that “safe-haven investor buying and ongoing Federal Reserve easing” were likely to continue to support the precious metal. Meanwhile, silver for March delivery soared 1.17% to trade at a four-day high of USD29.41 a troy ounce, while copper for March delivery surged 1.11% to trade at USD4.325 a pound during early U.S. trade.

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