Chicago: Gold futures on the COMEX division of the New York Mercantile Exchange fell on Tuesday for a third straight session, as data showed US consumer confidence rose in September.
The most active gold contract for December delivery lost $4.9 (0.43 percent) to settle at $1,126.8 per ounce, reported Xinhua news agency.
Gold prices kept falling, a day after the precious metal logged its largest single-day drop since early September, as a private sector report released on Tuesday showed US consumer confidence rose in September, lifting concerns about the Federal Reserve’s decision to raise interest rates this year.
Analysts said consumer confidence is not exactly the same as spending but Federal Reserve policy makers believe it’s a positive indication.
Some analysts believe if Friday’s employment report proves as strong as the current assessment in this report, then the odds of a rate hike for the October meeting of Federal Open Market Committee (FOMC) would certainly look favourable.
Generally, increasing interest rates would send the US
dollar higher. Gold and the greenback typically move in opposite directions, which means a weaker US dollar can be a positive for commodities priced in dollars, while a stronger dollar can weigh on commodities.
Among other metals, silver for December delivery gained 3.5 cents (0.24 percent) to close at $14.573 per ounce.
Platinum for January delivery shed $4.4 (0.48 percent) to close at $918.1 per ounce.