* Gold down nearly 1 pct after hitting 3-month high on
Monday
* Silver, platinum slide with gold
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, Oct 13 (Reuters) - Gold fell nearly 1 percent on
Tuesday, retreating from a three-month high on profit-taking
after a two-day rally triggered by expectations the Federal
Reserve will not hike U.S. interest rates this year.
Spot gold XAU= fell 0.6 percent to $1,156.30 an ounce by
0643 GMT, after earlier dropping as much as 0.9 percent. The
metal hit a three-month high of $1,169 in the previous session.
U.S. gold futures GCcv1 fell 1 percent to $1,152.
"It has been an impressive rally for the precious complex
since the nonfarm payrolls 10 days ago, however it looks like
the momentum is now starting to wane," said James Gardiner, a
bullion trader with MKS Group.
"Overnight weakness in the oil price may also flow through
the commodity complex and put additional pressure on precious
metals and a bid on the dollar," he said. A stronger dollar
would make gold expensive for holders of other currencies.
Bullion has gained $50 an ounce, or nearly 5 percent, since
a surprisingly weak U.S. nonfarm payrolls report on Oct. 2. The
data prompted the market to shift expectations of a Fed rate
hike to 2016 and sell the dollar.
Gold, as a non-interest-paying asset, benefits from
ultra-low interest rates.
However, comments from Fed officials signalling that the
U.S. central bank was in no hurry to raise rates did not offset
the profit taking on Tuesday.
The Fed should hold off on any rate hike until it is clear
that a global slowdown, trouble in China and other international
risks will not push the U.S. recovery off course, Fed Governor
Lael Brainard said on Monday in one of the strongest defenses
yet of a go-slow approach to rate policy. urn:newsml:reuters.com:*:nL1N12C0YA
The Fed refrained from hiking rates at its last meeting in
September, citing concerns with the global economy and
volatility in financial markets. It holds two more policy
meetings in 2015: on Oct. 27-28, and then in December.
Among other precious metals, silver XAG= fell as much as
1.2 percent, after hitting a 3-1/2-month high of $16.10 last
week.
Platinum XPT= fell 1 percent, dropping from a one-month
high of $998.50 an ounce in the previous session. Palladium
XPD= recovered from earlier losses to trade up 0.4 percent.
PRICES AT 0643 GMT
Metal Last Change Pct chg
Spot gold 1156.3 -7.3 -0.63
Spot silver 15.72 -0.1 -0.63
Spot platinum 982.75 -10.25 -1.03
Spot palladium 693 3 0.43
Comex gold 1155.9 -8.6 -0.74
Comex silver 15.73 -0.134 -0.84
COMEX gold and silver contracts show the
most active months