We consider the magnetic properties of high Tc cuprates from a gauge theory point of view, with emphasis on the underdoped regime. Underdoped cuprates possess certain antiferromagnetic correlations, as evidenced, for example, by different temperature dependence of the Cu and O site NMR relaxation rates, that are not captured well by slave boson mean field theories of the t-J model. We show that the inclusion of gauge fluctuations will remedy the deficiencies of the mean field theories. As a concrete illustration of the gauge-fluctuation restoration of the antiferromangetic correlation and the feasibility of the 1/N perturbation theory, the Heisenberg spin chain is analyzed in terms of a 1+1D U(1) gauge theory with massless Dirac fermions. The 1/N-perturbative treatment of the same gauge theory in 2+1D (which can be motivated from the mean field pi-flux phase of the Heisenberg model) leads to a dynamical mass generation corresponding to an antiferromagnetic ordering. On the other hand, it is argued that in a similar gauge theory with an additional coupling to a Bose (holon) field, symmetry breaking does not occur, but antiferromagnetic correlations are enhanced, which is the situation in the underdoped cuprates.