US gold drops to 2-1/2 wk low; dollar up, oil down

 * December gold GCZ9 slipped $14.20, or 1.50 percent, to
$934.50 an ounce on the COMEX division of the New York
Mercantile Exchange.

 * Range extended down to $931.30, lowest since July 30,
from $950.40.

 * Investors sold gold along with other metals and
commodities as investors returned to a more risk-averse posture
- traders.

 * The dollar was sought as a less risky currency,
undermining dollar-denominated gold's value in overseas markets
- traders.

 * Dollar hit a two-week high against the euro as doubts
about the strength of the U.S. recovery caused heavy selling in
crude oil and global stock markets. [USD/]

 * Oil's steep decline also hit gold as investors unwound
their yellow metal holdings as a guard against inflation -
traders.

 * Crude oil prices slid below $66 a barrel, their lowest
level this month, as investors became more cautious about the
pace of global economic recovery. [O/R]

 * Monday's selling follows heavy selling in Friday's
session after a gloomy consumer confidence reading cast doubt
on an economic pickup - traders.

 * COMEX estimated 9:00 a.m. (1300 GMT) volume at 53,935
lots.

 * Spot gold XAU= quoted at $931.35 an ounce by 9:33 a.m.
(13:33 GMT), down from $945.25 in late Friday dealings in New
York.

* London morning gold fix XAUFIX= set at $937.50 an

ounce, down $16 from Friday.