* Gold gains after seven days of losses
* Coming Up: U.S. non-farm payrolls 1330 GMT
(Updates throughout, changes dateline from SINGAPORE)
By Clara Denina
LONDON, Nov 6 (Reuters) - Gold rose on Friday on lower
European stocks, but was set to post its biggest weekly drop
since July as investors shunned the metal on renewed speculation
of a December U.S. rate hike.
Market participants were awaiting U.S. non-farm payrolls
data, due later in the day, for indications on the strength of
the economy and how it would affect the Federal Reserve's
monetary policy. ECONUS
Spot gold XAU= gained 0.4 percent to $1,107.66 an ounce by
1019 GMT, snapping seven days of losses. It hit $1,102.35 in the
previous session, the lowest since Sept. 11, and was heading for
a 3 percent decline for the week, the sharpest such slide since
the end of July.
"The technical picture has weakened this week after the Fed
officials' comments, and prices are struggling above the $1,100
area," ActivTrades chief analyst Carlo Alberto de Casa said.
Fed Chair Janet Yellen said on Wednesday that a rise in
rates in December was a "live possibility" if justified by
upcoming economic data. urn:newsml:reuters.com:*:nL1N12Z20G
The Fed in its October policy statement was deliberately
trying to convince investors of a possible December interest
rate hike, and was successful in doing so, Atlanta Fed President
Dennis Lockhart said on Thursday. urn:newsml:reuters.com:*:nL1N1302RU
Non-interest-paying gold could see demand take a hit from
higher rates.
The health of the U.S. jobs market is one of the key factors
in the Fed's thinking and solid October data at 1330 GMT could
seal the case for a December rate hike.
"Today's data is crucial but the question now is what kind
of number Yellen needs to raise rates in December," ActivTrades'
de Casa said.
According to a survey of economists, non-farm payrolls
probably increased by 180,000, well above the 139,000 jobs per
month average for August and September.
"The $1,100 handle is the key figure on the downside whilst
a spike back above $1,110 could signal a technical turnaround or
at least a consolidation," MKS Group said in a note.
Assets in SPDR Gold Trust GLD , the top gold-backed
exchange-traded fund, tumbled to 671.77 tonnes, the lowest since
mid-August. On Thursday alone, the fund saw outflows of 8.34
tonnes, the biggest daily drop since July 17.
Among other precious metals, with a 10-percent slide,
palladium XPD= was on track for its worst week since September
2011, hurt by sharp outflows from exchange traded funds. Prices
slightly rebounded on Friday, up 0.5 percent at $606.50 an
ounce. GOL/ETF
Silver XAG= rose 0.3 percent to $14.99 an ounce and
platinum XPT= was up 0.6 percent at $951.25 an ounce. Both
metals were headed for their third straight weekly decline.