Gold prices fell in New York as some investors bet a four-week rally was overdone.

Before today, gold had gained 8.8 percent since Oct. 6 amid speculation a decline in the value of the U.S. dollar would boost investor demand in the metal. Gold's 4.7 percent gain last week was the biggest since mid-July. The metal is up 20 percent this year.

``We're seeing people getting out of length instead of real sellers,'' said Michael Guido, director of hedge-fund marketing at Societe Generale in New York. ``We've had a $56 rally so we're seeing some technical profit-taking in gold.''

Gold futures for December delivery fell $3, or 0.5 percent, to $624.70 an ounce at 10:45 a.m. on the Comex division of the New York Mercantile Exchange. Prices were little changed yesterday after dropping 0.2 percent the previous day.

A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date.

The seven-day relative strength index for gold futures has been above 70 the past six days, a signal to traders who look at historical charts that prices are poised to fall.

``Gold had a big move last week,'' said John Reade, an analyst at UBS AG in London. ``The key thing is if it does continue to slip lower whether we see physical demand below $620. If we don't, then prices are going even lower.''

Gold will touch $670 in the next three months, up from the previous forecast of $640, UBS said yesterday.

The gold market failed to rally even after the Democratic Party took control of the U.S. House of Representatives in yesterday's elections after 12 years of Republican control. Analysts had expected a Democratic win to weaken the U.S. dollar, which was little changed in New York.

``Speculators had positioned themselves for a weaker dollar and stronger gold,'' said Carlos Perez-Santalla, gold trader and president of Hudson River Futures in New York. ``People are bailing out of the longs after the market didn't rally after the Democrats won.''

Gold, sold in dollars, generally moves in the opposite direction of the U.S. currency, which is down 6.2 percent against six major currencies, including the yen, the euro and the Canadian dollar.