* Gold firms after dropping 0.7 pct in previous session
* Traders await U.S. economic data this week for cues
(Adds comment, updates prices)
By A. Ananthalakshmi
SINGAPORE, Sept 28 (Reuters) - Gold extended losses into a
second session on Monday ahead of a key U.S. jobs report this
week, pressured by worries the Federal Reserve would raise
interest rates this year.
Several Fed officials are scheduled to speak this week,
keeping the focus of the bullion market firmly on U.S. monetary
policy. Traders will also be closely monitoring economic data,
including nonfarm payrolls data due on Friday, to gauge the
strength of the economy.
Spot gold XAU= had eased 0.3 percent to $1,142.40 an ounce
by 0655 GMT. The metal had dropped 0.7 percent on Friday after
Fed chair Janet Yellen said the U.S. central bank would begin to
raise rates this year.
"Gold remains driven largely by expectations of Fed policy,
given the still high uncertainty about the hike date," Barclays (LONDON:BARC)
analysts said in a note.
Gold had earlier benefited from ultra-low rates, but the
non-interest-paying metal has lost about 3 percent this year on
fears that demand could take a hit with higher rates.
Data on Friday supported the view that the Fed could begin
raising rates this year. U.S. gross domestic product rose at a
3.9-percent annual pace in the second quarter, up from the 3.7
percent reported last month. ID:nL1N11V0O8
The Fed has said the timing of a rate hike would be data
dependent.
"Interest around $1,141 should continue to support gold over
the short-term, while $1,155 will provide resistance," said MKS
Group trader Sam Laughlin.
Earlier in the month, the Fed delayed a long-anticipated
rise in U.S. rates, citing concerns over the global economy and
improving investor sentiment towards gold. Holdings in SPDR Gold
Trust, the world's top gold-backed exchange-traded fund, rose
for a fourth straight session on Friday. GOL/ETF
Hedge funds and money managers raised their bullish bets in
COMEX gold futures and in the week to Sept. 22, U.S. Commodity
Futures Trading Commission data showed on Friday. ID:nL1N11V219
Among other precious metals, platinum XPT= fell 1 percent
to $933.15 on Monday, after posting its biggest weekly drop
since July on Friday.
The metal had fallen to a 6-1/2-year low last week on fears
that the Volkswagen (XETRA:VOWG) emissions scandal could dent demand for
diesel cars, where it is used in catalysts.
Palladium XPD= fell over 1 percent, following a near
10-percent jump last week, its biggest weekly gain since
December 2011.
PRICES AT 0655 GMT
Metal Last Change Pct chg
Spot gold 1142.4 -3.46 -0.3
Spot silver 15 -0.08 -0.53
Spot platinum 933.15 -10.34 -1.1
Spot palladium 652.22 -9.25 -1.4
Comex gold 1141.7 -3.9 -0.34
Comex silver 14.97 -0.141 -0.93
Euro 1.1171
DXY 96.307
COMEX gold and silver contracts show the
most active months