Gold Continues To Lanquish Amid Volatility

Gold futures declined 7.1% last week and are down 16.6% in October. The Dow Jones Industrial Average, meanwhile, fell 5.3% for the week and 22.8% in October.

Gold was volatile throughout the third quarter ranging from $741.30 to $977.70 an ounce.

Hedge fund and instituational selling, as well as strength in the US Dollar have contributed to the recent declines in gold prices.

"The fact that gold did not head higher during the current leg of the crisis seems to reflect a combination of the rise in the dollar, deleveraging of commodity positions, sales to meet margin calls, and the unwinding of the long gold, short dollar trade," ... Natalie Dempster, an analyst at the World Gold Council.