Daily Gold Update

Source: MarketWatch

New York— Gold futures fell 6% Monday, pressured by tumbling oil prices and firmness in the U.S. dollar, as other metals also posted steep losses, with silver dropping 8%. Gold for February delivery dropped $46.60, or 6%, to $772.30 an ounce in electronic trading on Globex. The contract hit an intraday low of $770.10 an ounce.

Gold fell "on sharply lower oil prices and the dollar remaining firm after strong gains at the end of last week," said Mark O'Byrne, executive director at Gold and Silver Investments Ltd. "Renewed uncertainty and weakness in stock markets could result in short-term weakness in gold, but gold [should] continue to see a flight to safety in the medium and long term," he said in a morning note. The Reuters/Jefferies CRB Index, a benchmark gauging the prices of major commodities, fell 3.1% to 234.63 points. See full story.