In London, gold reached $1,143.76, the lowest price since April 2010. In New York, Comex gold for December delivery slipped 1.9% to $1,145.10. The gold futures market saw huge dumping of gold in illiquid Asian markets overnight, according to Zero Hedge.
Gold's eight-day run to near the $1230 area appeared to run into a bit of profit-taking overnight as the euro stopped crumbling. At the same time, not much was given up in values as apprehensions about European bank writedowns remained visible.
Following yesterday's add-on rally, gold turned lower and headed back toward the $800 level. The metal fell to a low of $802 overnight as the dollar recovered and as oil gave up a good portion of its own gains from Monday. At the open, bullion was quoted at a better level of $816.00 per ounce, showing a loss of only $5.50 per ounce. Volatility will remain at center-stage, as there is plenty of data to digest (and profits to bank).