Futures Pros – Gold futures extended losses on Tuesday, plunging to a one-week low, following the release of upbeat U.S. factory orders data, which reinforced speculation that the U.S.economic recovery was gaining momentum. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,387.65 a troy ounce during early U.S. trade, plunging 1.92%. It earlier fell to USD1,385.95 a troy ounce, the lowest price since December 28. Earlier in the day, the U.S. Census Bureau said that factory orders increased by a seasonally adjusted 0.7% in November, after falling by a revised 0.7% in October. Economists had expected U.S. factory orders to fall by 0.4%. The better-than-expected data reinforced speculation that the U.S. economic recovery was gaining momentum, reducing the safe-haven appeal of the precious metal. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.05% during early U.S. trade. A stronger dollar dampens demand for raw materials as an alternative investment and makes metals priced in the currency more expensive for holders of other monies. Meanwhile, global investment bank Credit Suisse said in a report late Monday that it expected gold prices to reach USD1,630 an ounce in 2011, citing increased bullion buying from central banks. The lender said in a report that, “Central banks who might otherwise have been adding to the reserve positions of euro, or sterling or yen, are at the margin adding to their reserve positions of gold instead. We fully expect that trend to obtain on into 2011”. Elsewhere, silver for March delivery plummeted 1.97% to trade at a one-week low of USD 30.10 a troy ounce, while copper for March delivery edged down 0.07% to trade at USD 4.433 a pound during early U.S. trade.

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