Precious metals ended September 2014 on a mixed note

Gold prices fall to a nine-month low

Precious metals ended September 2014 on a mixed note. Gold prices ended the U.S. day session lower and fell to a nine-month low on Tuesday, 30 September 2014 at Comex. Prices fell as the dollar continues to eke out gains that put it on track for its best quarter since the financial crisis. A day earlier, gold got a helping hand from the unrest in Hong Kong to close higher.

Gold for December delivery shed $7.20 to settle at $1,211.60 an ounce. Gold prices fell on Tuesday, closing out September almost 6% weaker. The slide is the worst monthly drop since gold lost 12% in June.

December silver rose 10 cents, or 0.6%, to $17.48 an ounce.

The dollar index which measures the greenback's strength against six rival currencies, climbed 0.4% to 85.93. The U.S. dollar hit another six-year high against the Japanese Yen and a 22-month high against the Euro on Tuesday. Ideas the U.S. Federal Reserve will begin to tighten its monetary policy, while other major central banks do the opposite, have boosted the dollar and pressured the Euro currency and other major currencies. The appreciation of the greenback has been a major theme in the market place in recent weeksto the detriment of the raw commodity sector.

The market place continues to closely monitor a big but so far non-violent pro-democracy demonstration occurring in Hong Kong. Any escalation or violence in the Hong Kong protesting could quickly see keen risk aversion enter the market place. China is celebrating a week-long national holiday this week. Asian stock markets were pressured on the Hong Kong protesting and the uncertainty surrounding the matter.

In other China news, reports said the Chinese central bank eased lending rules so that its domestic banks could make more consumer home mortgage loans and prop up the flagging housing sector.

In Europe, the annual inflation rate in the European Union fell to a five-year low in September, with the annual consumer price inflation rate coming in at up 0.3%. That's down from a 0.4% rate in August. That data further bolsters notions the European Central Bank will continue to promote a very easy monetary policy. The ECB holds its monthly meeting Thursday.

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