Gold settled at its lowest level since mid-July on Tuesday, breaking through key support at August lows as the dollar hit a one-year high against the euro ahead of a European Central Bank meeting this week.
In the 10 minutes between 6:30-6:40 am EDT, gold’s losses snowballed, with more than 10,000 lots—or one-third of the volume at the time—changing hands after the yellow metal fell below key technical support at $1,275 an ounce and the Aug. 21 low at $1,273.06, traders said.
U.S. gold futures settled $22.40 lower, or 1.7 percent, at $1,265.00 an ounce—its worst day since July 14. Spot gold, meanwhile, plunged 1.8 percent to $1,265 an ounce.
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