Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 1.8% to close near a four-month low under $1,153, swept up in a widespread commodities sell-off fueled by economic weakness in China and worries about the fate of Greece.

China's stock markets tumbled more than 1% in the latest sessions, falling again despite the PCOB's urgent measures to staunch to the bleeding by easing the ability to buy on margin and adding substantial liquidity to the economy. Chinese equities have fallen around 30% in the past three weeks, shedding nearly $3 trillion in value and causing serious concern in Beijing that the overall economy might become destabilized. Additional easing measures are expected.

The dollar rose as the euro fell to a five-week low, pressured by uncertainty over the next step for Greece after voters rejected further austerity in a snap referendum over the weekend.

Commodities fell hard on the rising dollar and dimming demand from China, the world's largest consumer of natural resources, with copper plunging more than 4% to the lowest level since 2009. The other precious metals also fell, with silver dropping 4.8% while platinum and palladium lost 2.5$ and 4%, respectively.

At the Comex close: August gold fell 1.8% to $1,152.60; September silver dropped 77 cents to $14.99; October platinum slid $26.60 to $1,040; and September palladium shed $27.30 to $648.85 an ounce.