* Gold traders await U.S. data this week for cues
* VW emissions scandal further weighs on platinum
(Updates prices; adds comment, byline, NEW YORK dateline)
By Luc Cohen and Clara Denina
NEW YORK/LONDON, Sept 28 (Reuters) - Gold had its worst
session in 2-1/2 weeks on Monday, extending Friday's losses
ahead of a key U.S. jobs report later in the week that could
boost bets the U.S. Federal Reserve will raise interest rates
this year.
Spot gold XAU= fell 1.5 percent to a session low of
$1,127.70 an ounce, its biggest fall since Sept 9, and was
trading down 1.1 percent at $1,132.53 by 2:15 p.m. EDT (1815
GMT).
Prices extended Friday's declines made after Fed chair Janet
Yellen said she expected to begin raising rates later in 2015.
U.S. gold futures GCv1 for December delivery settled down
1.2 percent at $1,131.70 per ounce.
"There's just not enough money flow into the market," said
Bill O'Neill, co-founders of commodities investment firm Logic
Advisors in New Jersey, noting that given the declines in
equities and across commodities on a "flight to safety" day, the
lack of interest in gold did not bode well for the market.
O'Neill added that last Friday's U.S. Commodity Futures
Trading Commission data showing an increase in speculators'
bullish bets on gold in the week ended Sept 22, limiting
traders' expectations for gold's upside. ID:L1N11V219
Several Fed officials are scheduled to speak this week,
keeping the focus on U.S. monetary policy. Traders will also be
closely monitoring economic data, including non-farm payrolls
due on Friday, to gauge the strength of the economy.
Non-interest-paying gold has lost about 3 percent this year
on fears that demand could take a hit in a higher interest rate
environment.
Data on Friday supported the view that the Fed could begin
raising rates over the next months. 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
"Interest around $1,141 should continue to support gold over
the short-term, while $1,155 will provide resistance," MKS Group
said in a note.
Platinum XPT= fell more than 3 percent, touching a 6-1/2
year low of $914.25 an ounce and was trading down 3 percent at
$915.74 an ounce on Monday afternoon.
It posted its biggest weekly drop since July last week on
fears the Volkswagen (XETRA:VOWG) emissions scandal could dent demand for
diesel cars, in which it is used in catalysts. ID:nL5N11T3EN
Palladium XPD= fell 2.3 percent to $645.75 an ounce,
following a near 10 percent jump last week, its biggest weekly
gain since December 2011. Silver XAG= fell 3.5 percent to
$14.55 an ounce.