Here we go, here's the actual reason gold took a temporary hit...
"Strength in equities and a German court ruling that lets the country take part in European bailouts have lessened the need for gold as a safe haven, at least temporarily, and prompted selling to exit positions in which traders previously bought.
As of 12:27 p.m. EDT, December gold was $53.70, or 2.9%, lower at $1,819.60 an ounce on the Comex division of the New York Mercantile Exchange. The tumble comes one day after it hit a most-active-contract record high of $1,923.70.
Any uptick in sentiment for the euro zone can detract from any safety flight into gold in the short term, said Adam Klopfenstein, senior market strategist with MF Global. And, several analysts said, this is just what occurred when Germany's high court upheld the country's participation in past bailout efforts for some European nations and establishment of the European Financial Stability Facility, although the ruling also said future bailouts require parliamentary approval.
"There had been a fear the court might rule otherwise. So you have higher equity markets, with Europe very strong and markets here very strong," said Bill O'Neill, one of the principals with LOGIC Advisors."
