Precious metals turn pale

Prices were pressured by a climb in U.S. equities and some strength in the dollar

Bullion prices ended the U.S. day session modestly lower on Tuesday, 15 September 2015 at Comex. Prices were pressured by a climb in U.S. equities and some strength in the dollar, as traders looked to the latest U.S. economic data for clues on the Federal Reserve's decision on interest rates later this week. The focus of the world marketplace is the upcoming Federal Open Market Committee meeting on Wednesday and Thursday, in which members will discuss monetary policy. A statement and press conference from Fed Chair Janet Yellen are set for Thursday afternoon.

December gold fell $5.10, or 0.5%, to settle at $1,102.60 an ounce on Comex, giving back all of Monday's gain and then some.

December silver fell 3.7 cents, or 0.3%, to $14.326 an ounce.

Asian stock markets were mixed Tuesday, amid trepidation ahead of the FOMC meeting. China's Shanghai stock index was down 3.5% on the day, amid ongoing worries about the Chinese economy, which is the world's second-largest. Japan's Nikkei stock index was up 0.3% Tuesday after the Bank of Japan kept its monetary policy steady at its latest meeting.

In overnight news, the closely watched German ZEW economic sentiment index fell for the sixth straight month in September, at 12.1 versus 25.0 in Augusta 10-month low. This report falls into the camp of the Euro zone monetary policy doves who want the European Central Bank to initiate further monetary policy easing measures. However, there was an upbeat economic report coming out of the Euro zone Tuesday as the bloc's trade surplus widened in July to the highest level in over 10 years.

U.S. economic data released Tuesday has little impact on market prices as it was mostly in line or not too far away with market expectations. A report on retail sales showed a modest 0.2% rise in August, matching a forecast. However, a reading of business conditions in New York in Septemberknown as the Empire State manufacturing indexwas at its lowest level since 2009. August Industrial production fell 0.4% as expected and July business inventories rose a bit less than expected.

The precious metal is expected to trade in a relatively limited range ahead of the two-day policy meeting that concludes Thursday, with traders reluctant to make significant bets with the central bank's rate announcement looming. An interest-rate increase will likely set the tone for gold for the remainder of the year, offering support if the Fed decides not to lift rates, or reducing the appeal of the metal if rates are lifted.

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