LONDON, Aug 15: Gold fell nearly 5 per cent to almost a nine-month low in Europe on Friday, as a strengthening dollar and fears over slower growth prompted investors to sell off commodities.

Losses across precious metals were led by silver, which slipped 12 percent or $1.76 an ounce in Asian trade, pulling down gold, platinum and palladium in its wake.

Spot gold hit an intraday low of $773.90, its weakest since Nov. 20, before recovering to trade at $785.90/786.90 at 0925 GMT, down from $811.25/812.65 late in New York on Thursday.

The dollar is coming out top at the moment, so people have been liquidating commodities. A firmer dollar typically pressures bullion, which is often bought as an alternative investment to the US currency.

Gold is now holding just above key support in the $770s, analysts say, with any break lower potentially taking the precious metal down to its late-October level.

Gold really needs to hold here, otherwise it will slide back towards $750, which is the last vestige of the uptrend,” said Calyon metals analyst Robin Bhar.

If it loses that, the whole thing could just unravel, he said.

Silver suffered the most in the sell-off of precious metals, with prices plummeting to a low of $12.39 an ounce, their weakest since last September, in Asian trade.

Platinum and palladium slipped in silver’s wake, shedding 7 percent and 6 per cent respectively. Both have suffered significant losses in recent weeks on fears faltering global growth could affect car demand.

The more industrial precious metals, like silver and platinum, are also being hampered by concerns about global growth -- demand for platinum in autocatalysts, and for silver in its industrial offtakes, said Bhar. “That is adding to the doom and gloom.

Silver fell to $13.09/13.14 an ounce from $14.15/14.21 late in New York on Thursday.Spot platinum dropped to $1,387.50/1,407.50 an ounce from $1,481/1,501 an ounce.

Spot palladium fell to $287.50/295.50 an ounce from $306.50/314.50 an ounce.

—Reuters