As others have pointed out, negative news coming from Europe lately has been mostly Euro-negative, meaning that the US dollar has gained in value. With a stronger dollar, it should take fewer dollars to purchase a fixed quantity of a commodity like gold. Of course, this is not a guarantee, as gold's price is still determined by overall supply and demand; it is heavily traded in many forms, physical, "paper" (e.g. the GLD ETF), and derivatives (e.g. futures).
Gold over the last few years has shown good correlation with other risk assets, such as equities. There's no single factor at play for its rapid increase in value over the last couple of years, but clearly there has been a good deal of speculation that it will continue to appreciate. Many would argue that this is directly attributable to the loose monetary policy of central banks (such as the US's quantitative easing programs) since 2008/2009.
Heavy speculation on an asset often leads to volatility, especially in times of negative news. Weakness in the equity markets and other risky assets, in concert with the strengthening dollar, can diminish the risk appetites of market participants, who subsequently dial back their (typically more risky) speculative positions. In addition, there is increasing evidence of a building liquidity problem among European banks, which could provide additional reason to close positions in order to raise short-term cash. Any extra selling pressure coming from these potential sources of liquidations will have an increased negative effect on the price of gold.