LONDON, Sept 25 (Reuters): Gold prices fell to a nine-month low on Thursday as the dollar rose to four-year highs against a basket of currencies and stock markets strengthened. Platinum fell to its lowest since June last year, sliding below $1,300 an ounce, and silver and palladium also tumbled.
Spot gold hit a low of $1,206.85 an ounce, its weakest since Jan. 2, and was down 0.4 per cent at $1,211.56 an ounce at 1205 GMT. US gold futures for December delivery were down $7.30 an ounce at $1,212.20.
A run of upbeat US data has highlighted the diverging economic outlook for the euro zone and the United States. Expectations are growing that the Federal Reserve will begin tightening rates early next year.
The prospect of diverging monetary policy between the Fed and the European Central Bank sent the euro to a 22-month low against the dollar.
US policy and currency moves are the "one and only driver" of the gold market at present, VTB Capital analyst Andrey Kryuchenkov said.
"A stronger greenback and little or no inflation for the major economies remain the key threat to bullion's upside as we head into 2015," he said.
"Notably ... the world's largest ETF provider was still reporting ETF outflows following a pronounced plunge in its physical book last week," he added. "The physical interest in Asia remains anaemic, and we still see little chance for a sustained price rebound without any consumer buying here."
Gold drops to 9-month low as dollar hits 4-year peak
FE Team | Published: September 26, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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