* Gold benefits from Russia-Turkey tensions
* Silver hits fresh three-month high
* Palladium at highest since June
(Adds comment, byline, NEW YORK to dateline; updates prices)
By Marcy Nicholson and Clara Denina
NEW YORK/LONDON, Oct 6 (Reuters) - Gold rose to its highest
in nearly two weeks on Tuesday as the dollar fell in the wake of
disappointing U.S. economic data that raised doubts over a
Federal Reserve interest rate rise this year, while platinum
rallied 3 percent.
Spot gold XAU= rose 1.4 percent to $1,151.20 an ounce, the
highest since Sept. 24, and was up 1 percent at $1,147.01 an
ounce by 2:44 p.m. EDT (1844 GMT). U.S. gold futures for
December delivery GCZ5 settled up 0.8 percent at $1,146.40 an
ounce.
The gains added to Friday's 2.2 percent jump, the biggest
one-day rise since Jan. 15, which followed data showing U.S.
employers had slammed the brakes on hiring over the last two
months. ID:nLNN2LEBGC
Then on Monday, data showed the pace of growth in the U.S.
services sector decelerated in September, though some analysts
said a U.S. rate hike in December could not be ruled out
entirely. ID:nN9N118014
"The Fed is worried about the implications of continuing low
inflation or even outright deflation because of low oil prices,
but a December rate hike is still possible," Mitsubishi Corp
strategist Jonathan Butler said.
Analysts also cited increasing international political
tensions after Russia's warplanes violated the air space of
alliance member Turkey at the weekend. ID:nL8N12624U
"Increasing tensions between Russia and Turkey are helping
gold today ... That should continue in the short term, but then
the focus will be shifting back to what the Fed is going to do
and the dollar," Commerzbank (XETRA:CBKG) analyst Daniel Briesemann said.
The dollar .DXY was down 0.7 percent against a basket of
currencies and global shares rose. MKTS/GLOB
Platinum XPT= rose 3.1 percent to $940.25 an ounce, having
hit a near seven-year low of $888 on Friday, offering industrial
buyers a relatively good price, said James Steel, chief metals
analyst for HSBC Securities in New York.
"Its ability to get over $900 has led there to be some
modest revaluation of auto diesel demand going forward and may
not be as dire as the knee-jerk reaction to the auto diesel
issue," Steel said.
SPDR Gold Trust GLD , the top gold-backed exchange-traded
fund, saw its first outflow in two weeks on Monday. GOL/ETF
Silver XAG= rose to the highest in more than three months
at $16.08 an ounce, extending gains above its 200-day moving
average. It has gained nearly 10 percent since Thursday's close.
Palladium XPD= reached its highest since June at $712.50
an ounce as it continued to benefit from expectations that
demand for gasoline cars, where the metal is used in catalysts,
would rise due to the Volkswagen (XETRA:VOWG) diesel engine emissions
scandal.