Gold futures fell on Tuesday as most investors went for profit taking. Gold futures contract for December delivery declined 1.6 percent or $30.60 to settle at $1,861.30 per ounce at Comex trading of New York Mercantile Exchange.  Most of analysts believe that gold contract is likely of find support at $1,850 per ounce. Pundits think that global economic scenario is finally having its impact over gold prices.

However strategist from Citigroup raised their 2011 forecast to $1,590 from earlier projection of $1,440 per ounce. Forecast for 2012 were raised to $1,650 from $1,325 per ounce while long term real forecast was increased to $1,050 from $950 per ounce.

Strategist from Citigroup commented, “Fears about sovereign defaults and currency debasement have left many investors concerned about switching from equities into government bonds, and cash hardly looks like an attractive alternative when real rates are negative. Gold has therefore been the main beneficiary of all these concerns,” they further added, “We expect those tensions and concerns to dissipate over time and do not believe that (price-sensitive) jewelry demand will be able to make up for the loss of investment demand once sovereign financial tensions ease.”

Among other metals Copper futures contract for September delivery jumped 1 percent or $0.04 to $4 per pound. Silver futures contract for September delivery declined 2.4 percent or $1.03 to $42.29 per ounce.

Platinum futures contract for October delivery fell 1.3 percent or $25.60 to $1,880.10 per ounce while palladium futures contract for September dropped 0.1 percent or $0.70 to $764.40 per ounce.