Maven3 error "Could not find artifact"

We recently switched our artifactory repo to a new server and things were fine with build running fine. One of the team dev deployed a new artifact version to the repo and that caused the build to fail. We kept getting the below error on our continuous integration server while the build was working fine on all dev boxes

"Failed to execute goal on project... Could not resolve dependencies for project....SNAPSHOT: The following artifacts could not be resolved: {new artifact}. Failure to find ... in  http://localhost/artifactory/repo was cached in the local repository,  resolution will not be reattempted until the update interval of  artifactory has elapsed or updates are forced"

We debugged this issue for a while and made sure the artifact was deployed correctly to the repo and all that but the main issue was that in the error message the artifact location was wrong. It was looking in the localhost. We checked the POM and ensured the repositories link specified were correct. After quite a bit of head banging we leaned towards a issue with local cache of repo and decided to purge the local repository. We deleted the .m2/repository/artifact directory and that resolved the above error but gave the below error

"Failed to execute goal on project... Could not resolve dependencies for project....SNAPSHOT: The following artifacts could not be resolved: {new artifact} Could not find artifact in artifactory (http://localhost/artifactory/repo) "

We were still looking to find as to why it was not pointing to the correct repo location. The fact that it was working fine on all all places made us believe that there was a specific issue with the continuous integration box so we decided to specify a override on the local repo location so it downloads fresh a copy of all dependencies and thats when we saw a default mirror repo location specified in the local m2 settings.xml file. The file had the below properties set

<mirrors>
    <mirror>
        <id>artifactory</id>
        <mirrorOf>*</mirrorOf>
        <name>Artifactory</name>
        <url>http://localhost/artifactory/repo</url>
    </mirror>
</mirrors>

That was causing the issue. We modified this to point to the new repo location and boom the error was gone