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 January 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 US. 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."

Holdings of gold exchange-traded funds, popular investment vehicles which issue securities backed by bullion, have fallen by close to a million ounces this month, their biggest monthly outflow this year, according to Reuters data.

Investors will be watching more US data due later on Thursday, including durable goods orders for August, to gauge the strength of the world's largest economy and the implications for the Federal Reserve's monetary policy and the dollar.

Physical demand has been subdued this year after a record 2013, when prices slumped by 28 per cent. Buying of physical gold in top market China was light on Wednesday, traders said, even ahead of the Golden Week holiday next week.

China's net gold imports from main conduit Hong Kong slid to their lowest since May 2011 in August due to adequate stocks from earlier purchases and as consumer demand remained weak, data showed on Thursday.

Among other precious metals, spot silver was down 0.7 per cent at $17.52 an ounce, spot platinum was down 0.6 per cent at $1,306.50 an ounce, and spot palladium was down 1.6 per cent at $801.75 an ounce.

Platinum earlier fell to its lowest since June 2013 at $1,295.25 an ounce, while palladium slid to its lowest in more than four months at $792 an ounce. - Reuters