PRECIOUS-Gold heads for biggest monthly fall in 2-1/2 years

* Gold near lowest since Feb 2010 near-six-year low
* Bullion down 7 percent in November
* Palladium down 19 pct, platinum 16 pct in November

(Updates prices; adds comment, second byline, NEW YORK
dateline)
By Marcy Nicholson and Clara Denina
NEW YORK/LONDON, Nov 30 (Reuters) - Gold rose 1 percent on
Monday but remained close to its lowest level in almost six
years and was on track for its steepest monthly slide in 2-1/2
years on prospects of a U.S. interest rate rise this year as the
dollar hit a multi-month high.
Spot gold XAU= was up 0.9 percent at $1,066.40 an ounce at
2:57 p.m. ET (1957 GMT), just above Friday's trough at
$1,052.46, the lowest since February 2010.
"We've got the payroll (data) this Friday and you don't want
to be short ahead of that," said Eli Tesfaye, senior market
strategist for brokerage RJO Futures in Chicago, noting that
some support also came from the weak U.S. stock markets.
The dollar .DXY was at an 8-1/2-month high against a
basket of major currencies, making gold more expensive for
holders of other currencies, typically a source of pressure.
Bullion has lost nearly 7 percent of its value in November,
its biggest monthly fall since June 2013, as investors remained
focused on a possibly imminent rate hike in the United States.
The U.S. Federal Reserve holds its next policy meeting on
Dec. 15-16.
"Gold's negative correlation with the dollar is likely to
continue because of the expectations of the U.S. interest
rates," ETF Securities Martin Arnold said.
"We expect the dollar to peak early next year and then
decline as the market gets on board with the pace of the Fed
tightening cycle."
A U.S. payrolls report on Friday will be even more closely
watched than usual. A strong number, after a surge in job growth
in October, could cement expectations that the Fed will deliver
its first hike in almost a decade.
"A number close to the 200,000 mark will be sufficient to
confirm in the Fed's mind that the time is right to act," ICBC
Standard Bank analyst Tom Kendall said.
The European Central Bank policy meeting on Thursday will
also be eyed for impact on the currency markets. The ECB is
widely expected to ease policy.
Investors are pulling money out of bullion funds,
exacerbating the sell-off in gold.
Assets in SPDR Gold Trust GLD , the world's top gold-backed
exchange-traded fund, fell to their lowest since September 2008
on Friday. GOL/ETF
Platinum XPT= has lost 16 percent in November and fell 1.6
percent to a seven-year low at $820.60 per ounce on Monday.
Silver XAG= was up 0.2 percent at $14.07 but was set for a
9.5 percent monthly loss.
Palladium XPD= has lost 19 percent for the month. For the
session, it was down 1.1 percent at $541.75 an ounce.