Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.8% to hold above $1,075 as the dollar rallied in response to Friday's solid jobs data and plunging oil prices, reducing demand for alternative assets.

Friday's release of the U.S. Nonfarm Payrolls Report showed the economy adding 211,000 jobs last month, almost precisely in line with the monthly average for 2015. Signaling ongoing health in the labor market, the data is expected to clinch a rate hike by the Fed when it meets later this month.

The dollar rallied on NFP follow-through, picking up 0.4% against major rivals. A rising dollar weighs on gold and other commodities denominated in it for international trade by making them more expensive to users of other currencies.

Oil prices fell again to nearly a seven-year low in the aftermath of OPEC's decision last week to maintain production of crude and present levels. Tumbling oil supported the dollar as commodity linked currencies like Russia's ruble and Norway's krone were pulled lower. Gold prices often show a positive correlation with oil prices, as the latter is used as a gauge of future inflation.

The other precious metals also fell, with silver dropping 1.4% while platinum and palladium lost 2% each.

At the Comex close: February gold fell $8.90 to $1,075.20; March silver dropped nearly 20 cents to $14.33; January platinum lost $17.40 to $863.20; and March palladium gave up $11.40, to $555.45 an ounce.