U.S. gold futures slipped in early Monday business to levels last seen 2-1/2 months ago as the dollar firmed against the euro and some investors' increased risk appetites favored other assets over gold, especially in overseas markets, traders said. For the latest detailed report, click on [GOL/]. GOLD * Gold for June delivery GCM9 was down $27.0, or 3 percent, at $870.10 an ounce on the COMEX division of New York Mercantile Exchange. * It dropped as low as $868.70 from an early high of $899.50. * That low as last hit on Jan. 23. * A rise in the dollar against the euro pressured gold and other dollar-denominated precious metals. * Gold becomes more expensive to hold for overseas investors when the dollar strengthens. * Despite early selling of U.S. equities, some investors' risk appetites have been increasing and have sold gold as a safety play - analysts. * Gold was sold by some short-term players along with most other commodities - analysts. * European inflation readings showing deflationary trend also weighing on gold prices - analysts. * Gold selling began in Asian markets and continued into New York trade - traders. * Once gold fell below $885 and then $875 an ounce, technical selling accelerated the decline - traders. * COMEX estimated heavy selling at 81,673 lots by 10 a.m. EDT (1400 GMT). * Spot gold fell to $867.25/868.25 an ounce by 10:31 a.m. from $895.00 in New York late Friday. * London morning fix dropped to $879.50 an ounce. SILVER * COMEX May silver SIK9 tumbled with gold, down 60.50 cents, or 4.75 percent, at $12.13 an ounce. * Range extended down to $12.0750 from $12.80. * COMEX estimated midday electronic volume at 12,253 lots. * Spot silver at $12.11/12.18 an ounce, below $12.73 at Friday's finish. * Silver fix was set lower in London at $12.41 an ounce. PLATINUM * NYMEX July platinum PLN9 lost $18.30 to $1,148 an ounce. * A new platinum and palladium ETF launched Monday help stem losses in platinum-group metals. * Spot platinum was quoted lower at $1,139/1,147 versus $1,155.50 at Friday's close. PALLADIUM * June palladium PAM9 edged down 15 cents to $224.80 an ounce, tracking platinum's decline. * Spot palladium increased to $222/226 an ounce from $219 on Friday.

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