Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.7% in thin trade to close above $1,068, giving up most of last week's 1% gain as retreating oil prices and concerns about China's economy weighed on commodities.

Prices for U.S. and Brent crude plunged more than 3% to under $37 per barrel, close to an 11-year low, as ongoing supply surpluses snuffed out last week's short-covering rally. Gold often tracks with oil as a hedge against energy-related inflation.

Weaker profits among industrial companies pummeled Chinese equities and raised new worries about the strength of the world's second-largest economy. U.S. and global shares were also swept lower, with the Dow tumbling more than 100 points before retracing most of those losses late in the session.

The other precious metals also fell, with silver losing 3.6% while platinum and palladium shed 0.5% and 1.3%, respectively.

At the Comex close: February gold dropped $7.60 to $1,068.30; March silver lost 52 cents to $13.86; January platinum slid $4 to $880.20; and March palladium slid $7.35 to $551.90 an ounce.