Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 1% to close above $1,085 as traders took profits from last week's 3.6% rise. Risk appetite returned to stock markets and the dollar rose with a stronger yuan, reducing demand for alternative stores of value.

China's central bank increased efforts to support the yuan by driving up interest rates in the offshore market, neutralizing speculative bets that could push the currency lower. The move instilled confidence among global traders that China is committed to stabilizing its currency and stock market after last week's dramatic sell-offs.

The dollar traded higher against major rivals as risk-appetite returned, pressuring gold and other commodities denominated in it for international trade. Crude oil dropped under $30 per barrel for the first time in 12 years before recovering on news of the stronger yuan, which boosts the buying power of the world's second-largest oil consumer.

The Dow gaining 0.5% and European stocks broke a four-day losing streak, further eroding safe-haven demand for metals. Silver slid 0.8% while platinum and palladium both lost 0.9%.

At the Comex close: February gold fell $11 to $1,085.20; March silver dropped 11 cents to $13.87; April platinum lost $7.70 to $838.60; and March palladium slid $4.50 to $469.80 an ounce.