Gold price continued to decline on the speculation on the interest rate hike by the Fed this year. Fed Chairwoman Janet Yellen said in a speech at the University of Massachusetts last Thursday that she expects that the Fed will start raising its interest rates by the end of the year, followed by a gradual pace of interest rate hikes.

Yesterday's comments by New York Federal Reserve Bank President William Dudley added to this speculation. He said in an interview with The Wall Street Journal on Monday that the Fed could still start raising its interest rates this year. Dudley noted that the interest rate hike in October is also possible.

Today's U.S. economic data also weighed on gold price. The Conference Board released its consumer confidence index for the U.S. on Tuesday. The index rose to 103.0 in September from 101.3 in August, beating expectations for a rise to 96.1. August's figure was revised down from 101.5.

October futures for gold on the COMEX today declined to 1124.30 dollars per ounce.