PRECIOUS-Gold falls 1 pct as rally loses steam

                                
 * Greece trade unwinding, technical selling weighs
                                
 * Palladium retreats from last week's two-year high
                                
 * Newmont CEO expects gold at $1,500 in next several years
                                
 * Coming up: Barrick <ABX.TO> CEO Aaron Regent interview at
Reuters Summit Tuesday 1200 EST (1700 GMT)
 (Recasts, updates comments, closing prices, adds NEW YORK to
dateline, second byline)
                                
 By Frank Tang and Jan Harvey
                                
 NEW YORK/LONDON, March 8 (Reuters) - Gold fell 1 percent on
Monday on technical selling and liquidation by investors of
positions added last week to cushion currency volatility from
the Greek debt crisis.
                                
 Traders said that the market's failure to hold an important
psychological chart level just above $1,130 an ounce
disappointed investors, prompting further selling of the
precious metal.
                                
 "There is profit taking after the sharp increase over the
past few weeks in gold, and a bit of unwinding of the excessive
fear trade linked to Greece and Europe," said Zachary Oxman,
managing director at California-based TrendMax Futures.
                                
 Gold ended about $20 higher last week as questions about
the ability of Greece to repay its debt spurred buying of the
metal as a hedge against economic uncertainties.
                                
 U.S. gold futures for April delivery <GCJ0> on the COMEX
division of the NYMEX settled down $11.20 at $1,124 an ounce.
                                
 Spot gold <XAU=> was at $1,122.45 an ounce at 3:01 p.m. EST
(2001 GMT), down from $1,133.80 in New York late Friday.
                                
 "It ran out of steam on currencies, and in a thin market
with bullish comments about growth around, gold is feeling a
bit heavy," said Simon Weeks, head of precious metals at the
Bank of Nova Scotia.
                                
 The precious metal rose earlier in the session after last
week's better than expected U.S. jobs data boosted hopes for an
economic recovery and increased investors' willingness to take
on risk.
                                
 This benefited higher-yielding currencies, such as the
euro, at the expense of the dollar <EUR=>. Weakness in the U.S.
unit boosts gold's appeal as an alternative asset and makes
dollar priced commodities cheaper for holders of other
currencies.
                                
 Concern over the fiscal health of debt-laden Greece and
other peripheral euro zone economies weighed heavily on the
euro last week. However, those fears are now receding.
                                
 In addition, selling pressure increased after Commodity
Futures Trading Commission data released on Friday showed an
increase in net long non-commerical, or short-term trading,
position in gold futures, analysts said. [ID:nN0597531]
                                
 INVESTMENT DEMAND SUPPORTS
                                
 Underlying investment demand should provide support, as
holdings of the world's largest gold-backed exchange-traded
fund, the SPDR Gold Trust <GLD>, rising 0.609 tonnes on
Friday.
                                
 From the supply side, Newmont Mining Corp <NEM.N>, the
world's No. 2 gold producer, might consider expanding
operations into countries it previously believed were too
politically risky, its CEO told Reuters. [ID:nN08190322]
                                
 Newmont CEO Richard O'Brien also said at the Reuters Mining
and Steel Summit that gold should trade between $1,000 and
$1,250 in 2010, and should reach $1,500 in the next several
years due to stimulus-led inflation. [ID:nN08511577]
                                
 Palladium <XPD=> rose as high as $477 an ounce, close to
the two-year high of $480 an ounce it hit late last week, but
retreated along with gold to $469 against Friday's $471.
                                
 Robust auto sales figures in the major gasoline car markets
China and the United States lifted prices last week. While
diesel autocatalysts use a heavier loading of platinum than
palladium, petrol catalysts are more palladium-intensive.
                                
 Among other precious metals, platinum <XPT=> was at $1,594
an ounce, up versus $1,569.50. Spot silver <XAG=> fell to
$17.18 an ounce from $17.32.
                                
                     Close  Change   Pct    2009     YTD
                                
                                     Chg   Close   % Chg
US gold      <GCJ0>    1124.00   -11.2  -1.0 1096.20     2.5
US silver    <SIK0>     17.272  -0.110  -0.6  16.845     2.5
US platinum  <PLJ0>    1600.10   21.00   1.3 1471.00     8.8
US palladium <PAM0>     471.35   -5.35  -1.1  408.85    15.3
Prices at 2:47 p.m. EST (1947 GMT)
Gold         <XAU=>    1123.00  -10.80  -1.0 1096.35     2.4
Silver       <XAG=>      17.20   -0.12  -0.7   16.84     2.1
Platinum     <XPT=>    1596.00   26.50   1.7 1465.50     8.9
Palladium    <XPD=>     469.00  -2.000  -0.4  405.50    15.7
Gold Fix     <XAUFIX=> 1125.75   -8.25  -0.7    1104     2.0
Silver Fix   <XAGFIX=>   17.33    8.00   0.5   16.99     2.0
Platinum Fix <XPTFIX=> 1603.00    5.00   0.3    1466     9.3
Palladium Fix<XPDFIX=>  475.00    2.00   0.4     402    18.2
 (Reporting by Frank Tang and Jan Harvey)