A graph with gold bars in the foreground
* Technical selling, EU summit uncertainty weigh
* Gold set for biggest one-day loss in two weeks
* Falling in tandem with stocks, commods led by copper
(Recasts, updates comment, prices, adds NEW YORK to dateline,
second byline)
By Frank Tang and Amanda Cooper
NEW YORK/LONDON, Oct 20 (Reuters) - Gold fell 2 percent on
Thursday, on track for its biggest one-day drop in two weeks,
hurt by technical selling and anxiety over whether European
leaders can reach a deal to boost the region's bailout fund.
Bullion dipped again with stocks and commodities on news of
a deadlock between France and Germany over how to strengthen
the EFSF bailout fund, while the International Monetary Fund
and the European Union are at odds over how to tackle Greek
debts ahead of a critical European summit on Sunday.
The metal has fallen 4 percent during its current four-day
losing streak, moving lower in tandem with riskier assets such
as equities. Copper, the bellwether industrial metal, dropped
more than 6 percent on Thursday, beset by economic jitters.
On charts, gold is set for a test below its 150-day average
at $1,605 an ounce, which it has held for three weeks.
Technical selling accelerated after a break below its 100-day
moving average on Wednesday, analysts said.
"There is no real support for gold until it trades back
toward $1,550-1,575. We fear it may get there faster than
anyone might wish to imagine given the liquidation pressure
taking place," independent investor Dennis Gartman said.
Spot gold fell 1.8 percent to $1,611 an ounce by 12:01 p.m.
EDT (1601 GMT). U.S. December gold futures were down $34.20 at
$1,612.80.
Silver fell 2.4 percent to $30.24 an ounce.
Gold, traditionally seen as a safe-haven investment,
rebounded from lows following September's near-11 percent
decline. Analysts, however, said bullion's usual inverse
correlation to riskier assets has disappeared, making it less
likely to act as a safe-haven in times of market turmoil.
Bullion investors now look forward to possible details of
plans to contain the nearly two-year-old euro zone debt crisis
at Sunday's European summit.
But with a backdrop of Greek police clashing with
demonstrators as workers began their biggest strike in years in
protest at cuts demanded of their country, the market remains
nervous.
Palladium was last down 1.6 percent at $587.75 an ounce,
while platinum fell 2.4 percent to $1,474.24 an ounce.
(Additional reporting by Rujun Shen in Singapore; Editing by
Dale Hudson)