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PRECIOUS-Gold sinks below $1,200 for first time in nearly 3 years

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* Gold slides even as other commodities rise * Analysts cite liquidation, quarter-end book squaring * Bullion set for biggest quarterly drop since at least 1968 * Coming up: U.S. Reuters/UMich index Friday (New throughout, updates prices and market activity) By Josephine Mason and Clara Denina NEW YORK/LONDON, June 27 (Reuters) - Gold sank 2 percent on Thursday, as month-end book squaring and relentless liquidation by institutional investors sent bullion prices below $1,200 per ounce for the first time in nearly three years. Gold reversed early gains in New York trade, and the slide accelerated with stop-loss orders...

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