Gold futures slumped to start the week, as traders cashed out of the perceived refuge asset to cover losses in other markets as Europe's debt crisis seemed poised to take a turn for the worse. The most actively traded gold contract, for December delivery, fell $46.20, or 2.5 percent, to settle at $1,813.30 a troy ounce on the Comex division of the New York Mercantile Exchange, the lowest ending price since Aug. 29. The surprise resignation Friday of European Central Bank executive Juergen Stark rattled markets already concerned about the state of euro-zone finances, and worries about the stability of the currency union mounted over the weekend. Investors view a credit squeeze on the continent as increasingly likely, with Greece seen as standing on the edge of a default and market chatter focusing on the chance that Moody's may cut the credit rating of some large French banks. The US dollar index is soaring on safe haven buying, versus a weaker euro and on short covering – traders buying back positions to reverse a trade. Mark Arbeter, chief technical strategist at Standard & Poor's, wrote in a weekly note that "this breakout by the dollar opens the door for further price gains." On the one hand, if gold prices fall below $1,757 an ounce, that would be a bearish tell. "We think gold has entered a major correction that takes prices down to the $1,450-$1,550 an ounce region." The other option is that gold prices are simply consolidating before popping higher – a move which could bring prices to $2,000 an ounce, which would then indicate an intermediate
