1st LD Writethru: Gold falls for 3rd session in row on upbeat U.S. data

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Tuesday for a third straight session, as data showed U.S. consumer confidence unexpectedly rose in September.

The most active gold contract for December delivery lost 4.9 U.S. dollars, or 0.43 percent, to settle at 1,126.8 dollars per ounce.

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 U.S. consumer confidence rose and well above expected in September, lifting concerns about the Federal Reserve's decision to raise interest rates this year.

Analysts said consumer confidence isn't 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 favorable.

Generally, increasing interest rates would send the U.S. dollar higher. Analysts say gold and the greenback typically move in opposite directions, which means a weaker U.S. 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, or 0.24 percent, to close at 14.573 dollars per ounce, while platinum for January delivery shed 4.4 dollars, or 0.48 percent, to close at 918.1 dollars per ounce. Enditem