omex gold has continued to drift lower, pressured in part by the softer tone in crude oil, says Stephen Platt, analyst with Archer Financial Services. "Certainly the deflationary environment is not being conducive to active purchases of gold," he says. This has offset some of the buying interest that might be related to ongoing concerns about possible government bailout of the auto sector and expansion of money supply, he says. Gold is choppy, he says. The area around $720 is key support, Platt says. "If we start getting below that, which was near the day's low (of $721.10), you might see this re-test $700," he says. There remains nervousness about potential for more fund redemptions and liquidation ahead of year-end, Platt adds. December gold is $7.80 lower at $725 an ounce, while December silver is down 19.5 cents to $9.61. (ALS) Contact us in Chicago at 312-750-4075; allen.sykora@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=gyqrrrOUgvITV9NeLavKMw%3D%3D. You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires

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