Gold fell on Monday for the sixth straight day as oil plummeted more than 10% and the Dow dropped below 7,000 for the first time since 1997. For the daily numbers, New York silver, gold and platinum futures stepped back 0.3 percent, 0.3 percent and 0.9 percent, respectively. The Dow lost 4.2 percent, the S&P declined 4.7 percent and the Nasdaq dropped 4 percent.
April crude-oil plunged, losing $4.61, or 10.3 percent, to close at $40.15 a barrel. AAA said the average price for regular unleaded gasoline increased 1.1 cents to $1.932 a gallon.
March silver lost 3.5 cents to close to $13.05 an ounce.
April platinum fell $9.40 to $1,075.90 an ounce
Gold for April delivery declined $2.50 to end at $940.00 an ounce.
"As things get a little uglier in the stock market, we might see some selling of gold for margin calls," Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, was quoted on Bloomberg.com. "There’s some weight on gold now."
Gold "fell into a decidedly negative mood later on Monday," wrote Jon Nadler, senior analyst at Kitco Bullion Dealers. "Not helping matters for bullion, were a hefty slump in crude oil (off $4.53 at $40.23 per barrel) and a US dollar within striking distance of the 89-mark on the index."
Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.
In spot trading, the London afternoon gold-fixing price — a benchmark for gold traded directly between big institutions — stood at $937.25 an ounce. London silver and platinum were at $13.14 and $1,090.00, respectively.