Precious metals turn pale

Gold futures settle lower for a second straight day

Bullion prices ended lower at Comex on Tuesday, 22 September 2015. Gold futures settled lower for a second straight day on Tuesday, as the dollar ticked higher on expectations that the Federal Reserve will raise benchmark interest rates sometime this year.

Gold futures for December delivery gave up $8, or 0.7%, to settle at $1,124.80 an ounce on Comex. Prices lost 0.4% on Monday after gaining 1.9% on Friday.

On Comex, December silver also dropped 46.5 cents, or 3.1%, to $14.756 an ounce.

It was a risk-off day in the market place on Tuesday, as U.S. stock indexes were sharply lower amid ongoing concerns about anemic world economic growth and the uncertainty regarding when the next U.S. interest rate hike from the Federal Reserve will occur. Several Fed officials said in remarks on Monday the U.S. central bank should raise its Fed funds rate yet this year.

European stock markets were also weaker on Tuesday. Asian stock markets finished firmer, with China's Shanghai stock index up 0.9% on the day. Other Asian stock markets also closed firmer on Tuesday. Asian traders are awaiting a manufacturing report from China due out Wednesday. There was also an upbeat mood in China markets as the Chinese premier visits the U.S. this week. Prices for metals on Comex also took a hit on Tuesday as Credit Suisse downgraded some mining shares and cut forecasts on commodity prices amid concerns about demand from China. The Asian Development Bank on Tuesday lowered its forecast for China's annual economic growth this year to 6.8% as pressures on the economy increased, from a previous forecast of 7.2%.

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