Gold slides to 10-week low

By Carole Vaporean

NEW YORK (Reuters) - Gold fell sharply on Monday as some investors unwound safe-haven positions, others sold as the dollar strengthened and others unloaded gold along with other commodities including oil and base metals.

Slides beneath key technical levels around $880 and $870 per ounce accelerated the decline as investors liquidated some long positions and targeted key support levels around $850.

Spot gold was quoted at $868.65/870.25 an ounce by 3:53 p.m. EDT, well off $892.50 in late New York trade on Friday.

The session low of $864.30 was last seen on January 23.

Analysts said a myriad of factors contributed to gold's decline and prevented fund buyers from jumping in.

"No buyers as selling begat selling. Too much for sale all at once, with sell stops from early morning from funds not wanting to be buyers ahead of too much for sale," said George Gero, a vice president at RBC CCapitalaptial Markets in New York.

An broad increase in the dollar weighed on gold. A stronger dollar tends to make dollar-priced bullion less attractive to overseas investors.

Stocks in Europe and New York fell on fading optimism about global economic recovery. <USD/> Investors doubtful of economic recovery also sold gold along with most other commodities.