* Gold rises from 4-week low
* Assets in SPDR gold fund fall to lowest in 3 weeks
* Technical picture still weak
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, Nov 3 (Reuters) - Gold firmed after a four-day
decline on Tuesday but languished near a four-week low as
investors dumped the metal on expectations the Federal Reserve
would hike U.S. rates this year.
The Fed last week firmly put a December rate rise in play,
hurting earlier views that the increase in nearly a decade could
be pushed to next year on global growth concerns.
Spot gold ticked up 0.3 percent to $1,137.05 an ounce
by 0647 GMT, but not too far from a four-week low of $1,132.35
reached in the previous session. The metal slid for a fourth
consecutive session on Monday.
"We remain negative on the overall precious group over the
short-term ... The combination of a stronger dollar, soaring
U.S. equity markets, ETF liquidation, a jittery Fed, along with
a worsening technical picture will all combine to keep the
complex on the defensive for a little while longer," said INTL
FCStone analyst Edward Meir.
As a non-interest-paying asset, gold demand could take a hit
from higher rates, while a stronger greenback makes
dollar-denominated gold more expensive for holders of other
currencies.
U.S. economic data on Monday was supportive of a rate hike
this year. Manufacturing activity in October hit a 2-1/2-year
low, but a rise in new orders offered hope the United States
might have seen its worst.
Other data showed construction spending rose in September to
the highest in 7-1/2 years, indicating the economy remained on
firmer ground despite signs of consumer spending cooling.
Investor outflows from exchange traded funds have increased.
Holdings in SPDR Gold Trust GLD , the top gold-backed
exchange-traded fund, fell 0.43 percent to 689.28 tonnes on
Monday, the lowest in three weeks. The fund hasn't seen any
inflow since Oct. 19.
Speculators have trimmed bullish bets on gold from an
8-1/2-month high, data last week showed.
Charts point to further price declines, according to
analysts.
The next support for gold comes in at $1,121, ScotiaMocatta
analysts said in a note.
While gold holds below $1,156, there is a risk of a deeper
correction to the October-low near $1,105, they said.
PRICES AT 0647 GMT
Metal Last Change Pct chg
Spot gold 1137.05 3.7 0.33
Spot silver 15.42 0.03 0.19
Spot platinum 975.6 3.1 0.32
Spot palladium 650.3 2.8 0.43
Comex gold 1137 1.1 0.1
Comex silver 15.415 0.007 0.05
COMEX gold and silver contracts show the
most active months