Daily Gold Update

Source: MarketWatch

New York— Gold futures fell more than 3% Monday to the lowest in nearly one month, pacing sharp losses in crude oil and other commodities, with a stronger U.S. dollar also reducing the metal's investment appeal. Gold for February delivery was last down $30, or 3.5%, at $825 an ounce on the Comex division of the New York Mercantile Exchange. It dropped to $821 earlier, the lowest since Dec. 15. The metal ended last week's trading down for the first week in five, falling 2.8%.

Monday's losses in gold paced sharp declines in other commodities and global equities. Crude oil tumbled more than 7% to below $38 a barrel on demand worries, while European and Asian stocks moved broadly lower. Falling crude prices tend to put downward pressures on gold prices as weaker crude reduces gold's appeal as a hedge against inflation. Also moving gold lower, the U.S. dollar rose against the euro on expectations that the European Central Bank will cut its key interest rate later this week. See full story.