The price of gold, while remaining above a nine-month low, is set to post its largest monthly drop in September.
Despite Asian stock markets being rattled by political protests in Hong Kong that are giving the Chinese leadership in Beijing food for thought, gold is on course to record its sharpest monthly loss since the middle of last year as the U.S. dollar's rise has reduced the price of the yellow metal, IDEX Online reports.
The gold price has declined by in excess of 5 percent during September, after hitting a nine-month low of just under $1,207 last week. Despite being up around 1 percent on the year, the price of gold is likely to post its first quarterly loss for 2014.
Analysts believe that despite the unrest in Hong Kong, the strength of the dollar – boosted by comments by the U.S. Federal Reserve that it aims to raise interest rates sooner than later – as well as indications that tensions in the Ukraine have subsided due to a tentative ceasefire will keep the price of gold in check. The spot gold is around $1,215 per ounce.
Meanwhile, the price of silver is set for a third consecutive monthly drop, while platinum is on track for its most severe monthly fall since June last year.
The dollar has risen to a four-year high against a basket of major currencies during September, boosted by strong U.S. economic data and the Fed's outlook on higher interest rates which would make the dollar more attractive to investors.
