US Dollar hits four year peak, drags gold down

Gold fell on Monday as downward pressure from a strong dollar outweighed support from unrest in Hong Kong, which hit global shares and led to some demand for the metal. Spot gold was down 0.2% to $1,217.10 an ounce by 2.22 GMT, while US gold futures gained $2.30 to $1,217.60 an ounce. Cash prices had reached a nine-month low of $1,206.85 on Thursday, before recovering slightly. The dollar was unchanged against a basket of major currencies and still close to a four-year peak hit earlier in the day as the market looked ahead to a series of important economic data, culminating in the release on Friday of US September non-farm payrolls. The bigger impact on gold prices could still come from US data as market players seek to gauge the strength of the economy and its impact on Federal Reserve policy. Strong economic data could prompt the US central bank to raise interest rates faster and sooner than expected, which could boost the dollar and hurt non-interest-bearing bullion.