Gold prices were in free fall Wednesday, down as much as $25, as the U.S. dollar index broke above $80. The Fed offered no big bazooka Tuesday, giving no hints of quantitative easing. The news propped up the dollar, which was already strong against the euro. The euro also was struggling to hold up after weak bond auctions in Italy and Germany. Italy's borrowing costs rose while Germany's fell but both countries saw weak demand. Mihir Dange, founder of Arbitrage, said the line in the sand for him would be $1,535 an ounce. "We break under that you have to get short," Dange said. -- Alix Steel
CME Group Executive Chairman Terrence Duffy said in testimony Tuesday that Jon Corzine knew that segregated customer funds had been transferred "to the firm's broker-dealer accounts" when Corzine served as CEO of MF Global (MFGLQ.PK). MF Global filed for bankruptcy on Oct. 31. Corzine resigned on Nov. 4. Duffy told a Senate panel that he had information that Corzine knew about a transfer of $175 million from customer accounts. Corzine told a House committee last week that he was "stunned when I was told on Sunday, October 30, 2011, that MF Global could not account for many hundreds of millions of dollars of client money."