Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold rebounded by 1% to close above $1,096 as a sell-off in equities and a falling dollar stoked safe-haven demand. The metal reached an intraday high above $1,104 before sliding back under resistance at $1,100.

China's stock markets tumbled sharply, losing more than 8% in Asian trading despite unprecedented efforts by the government to support valuations. It was the biggest one-day drop in shares in eight years, compounding fears about the health of the world's biggest energy consumer and second-biggest economy. U.S. and global equities plunged in China's wake as the Dow and Global Dow lost close to 1%.

The dollar lost around 0.7% against a basket of rivals as the sell-off in China helped to boost the euro and yen. A falling dollar supports higher prices for gold and other commodities denominated in it for international trade.

The other precious metals were mostly higher, with silver and platinum gaining 0.8% each. Outlier palladium, more heavily tied to industry, fell 1.5%.

At the Comex close: August gold gained $10.90 to $1,096.40; September silver added 13 cents, to $14.60; October platinum rose $8.20 to $988.90; and September palladium lost $9.50 to $613.10 an ounce.