At 9:30am, spot gold was $35 off yesterday's COMEX close as a selloff on the opening bell in New York caused prices to plunge. There is a rumor that a computer error in rolling into the next period caused the sharp drop, which snowballed as other algorithms were triggered to sell into the drop. Today is also the expiration date for December options on the COMEX, and speculators placed sell stops (pre-placed sell orders) in response, which were executed automatically.
Overnight, gold was lower in India as the rupee drops versus the dollar. The dollar is showing stronger against the euro, sterling and yuan, but good economic news in Canada and Australia have boosted their currencies against the U.S. dollar. Overseas equity markets were also lower overnight, and the broader U.S. markets have followed suit at the opening bell.
Now that the latest Greek crisis is taken care of, the world's attention is focused on Capitol Hill and the lack of progress on the Fiscal Cliff talks. At stake is the existence of many taxes and/or breaks involving stock dividends and futures, lending another reason for selloff of futures.