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)