Gold prices plummet to below $1,700

The price of gold dropped by a significant margin following an investor move out of the commodities market due to the escalating fears about the financial situation in Europe, The Wall Street Journal reported.

Gold for December delivery fell $55.20 to $1,686.50 an ounce following the news, marking a decline of 3.2 percent for the commodity.

"At this point in time I don't think one can say that the safe haven rationale for gold is off. It's just that it has been going up so much that we needed a very deep correction," Afshin Nabavi, head of trading at MKS Finance, told Reuters. "We see support starting to build around the $1,670 level provided silver doesn't break below $32."

The precious metal is headed for its largest weekly drop since early December 2008, according to the news source.

Individuals who want to invest in gold due to the current low prices it holds can utilize 1031 exchanges. These transactions allow people to move in and out of the metal markets while avoiding taxes on gains that are made in the exchange of commodities.