CORRECT: PRECIOUS METALS:

Spot Gold Below $1,700/oz; Technicals Weigh
Stop-loss liquidation--where orders to sell are triggered by moves through
key technical levels--drove the metal through $1,700/oz in overnight trade,
according to traders. A similar bout of liquidation could arise if the metal
breaks below support at $1,660/oz, they said.
European stock markets and the euro fell Monday, as the rally sparked by
Friday's progress at the summit of European Union leaders proved to be
short-lived and market participants examined the implications of the latest
measures by policymakers to address the region' debt crisis.
At 1053 GMT, the euro was 0.9% lower versus the dollar at $1.32665, while
London's FTSE 100 index was down 0.7% at 5492 points.
While gold is traditionally considered a hedge against economic insecurity,
its behavior in recent weeks has been more closely aligned to traditional
("PRECIOUS METALS: Spot Gold Below $1,700/oz; Technicals Weigh," at 1111 GMT,
misstated the technical support level in the third paragraph. The correct
version follows:)
--Spot gold is below $1,700/oz, pressured by weak euro and market-wide losses
--Technically-driven selling exacerbates losses; support at $1,660/oz next
target
--Dennis Gartman continues to trim gold holdings
By Francesca Freeman
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Spot gold is sharply lower in Europe Monday amid
widespread market losses as investors cast a skeptical eye over last week's
European Union summit and the euro lost ground against the dollar.
At 1052 GMT, spot gold was down 1.7% at $1,681.60 a troy ounce, below the key
$1,700/oz level, having hit a two-and-a-half week low at $1,676.56/oz in early
trade. The rest of the complex was also lower, as were base metals.
risk-related assets such as base metals and equities, as nervous investors seek
solace in cash rather than bullion.
The yellow metal is also priced in dollars, making it appear more expensive
when the greenback gains versus other currencies.
Gold's rocky ride in recent sessions has proved too much with some investors,
with many opting for the sidelines amid unusually-high volatility and others
actively selling their holdings.
Gold could be "in for a grilling" in the coming sessions as the metal breaks
below technical support levels and short-term market players move in and out of
the action in thin, end-of-year trade, a London-based trader said. "The market
is going to look as bearish down here as it was bullish on its way up through
$1,650/oz," he said.
Stop-loss liquidation--where orders to sell are triggered by moves through
High profile gold bull Dennis Gartman said Monday that his firm continues to
reduce its exposure to the yellow metal, hoping to eventually have an equal
exposure to equities versus gold. "We've been bullish for quite some while;
that bullishness has been proven proper, and if the market's price action
dictates that we hove to the sidelines, hove we shall," he said.
In other metals, spot silver was 2.4% lower at $31.400/oz, spot platinum was
down 1.4% at $1,488.75/oz and spot palladium was 2.5% lower at $665.50/oz.