Precious metals turn pale

Gold futures fell for a fourth straight session

Bullion prices ended lower at Comex on Thursday, 11 September 2014. Gold futures fell for a fourth straight session undercut by a dollar that remained supported by expectations the Federal Reserve will take a more hawkish tone on interest rates.

Gold futures for December delivery lost $6.30, or 0.5%, to settle at $1,239 an ounce.

September silver futures dropped 32 cents, or 1.7%, to $18.53 an ounce.

The dollar has rallied on expectations the Federal Reserve will change the language in its policy statement after next week's meeting, potentially reinforcing expectations for a rate hike next year. A stronger dollar can be a negative for commodities priced in the currency, making them more expensive to buyers who use other currencies.

In overnight news, China's consumer price index was reported up 2.0%, year-on-year, in August, versus up 2.3% in July. A rise of 2.2% was expected for August. That's some good news for the beleaguered raw commodity sector, as it suggests China, the world's largest raw commodity importer, won't have to tighten its monetary policy to keep inflation in check.

In another sign of the present ill health of the raw commodity sector, the United Nations reported Thursday that world food prices fell to a four-year low in August. Crude oil and grains are leading a price slump in the raw commodity sector.

U.S. economic data released Thursday included the weekly jobless claims report, which came in weaker than expected (a rise in claims). That report had little lasting impact on the markets, however. Traders and investors are already looking ahead to next week, and a more robust batch of economic data points, highlighted by the meeting of the U.S. Federal Reserve's Open Market Committee (FOMC). Next week is also the much-anticipated referendum on Scotland's independence from the U.K.

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