- Bullion spent much of Europe and early NY....>

GOLD: - Bullion spent much of Europe and early NY in a narrow range between

$1274.39 - $1277.15. It seemed like the theme of consolidation was set to

continue before price began heading lower as the US session progressed.

- It is worth noting that last week about same time there was $1B nominal seller

that dropped gold unexpectedly. Sources remind timing of last week's sell-off

coincided with chatter over large mid-East/Saudi acct cashing in. The latest

move certainly does NOT appear related to a relatively small blip higher in USD.

- Looking at the precious metal from a technical standpoint, price is

approaching an important level of support at $1260.67 (Oct6 low). A break below

this support could see further downside action in price.