* Gold gains after seven days of losses
* Coming Up: U.S. non-farm payrolls 1330 GMT (Updates throughout, changes dateline from SINGAPORE)
By Clara Denina
LONDON, Nov 6 (Reuters) - Gold rose on Friday on lower European stocks, but was set to post its biggest weekly drop since July as investors shunned the metal on renewed speculation of a December U.S. rate hike.
Market participants were awaiting U.S. non-farm payrolls data, due later in the day, for indications on the strength of the economy and how it would affect the Federal Reserve's monetary policy.
Spot gold gained 0.4 percent to $1,107.66 an ounce by 1019 GMT, snapping seven days of losses. It hit $1,102.35 in the previous session, the lowest since Sept. 11, and was heading for a 3 percent decline for the week, the sharpest such slide since the end of July.
"The technical picture has weakened this week after the Fed officials' comments, and prices are struggling above the $1,100 area," ActivTrades chief analyst Carlo Alberto de Casa said.
Fed Chair Janet Yellen said on Wednesday that a rise in rates in December was a "live possibility" if justified by upcoming economic data.
The Fed in its October policy statement was deliberately trying to convince investors of a possible December interest rate hike, and was successful in doing so, Atlanta Fed President Dennis Lockhart said on Thursday.
Non-interest-paying gold could see demand take a hit from higher rates.
The health of the U.S. jobs market is one of the key factors in the Fed's thinking and solid October data at 1330 GMT could seal the case for a December rate hike.
"Today's data is crucial but the question now is what kind of number Yellen needs to raise rates in December," ActivTrades' de Casa said.
According to a survey of economists, non-farm payrolls probably increased by 180,000, well above the 139,000 jobs per month average for August and September.
"The $1,100 handle is the key figure on the downside whilst a spike back above $1,110 could signal a technical turnaround or at least a consolidation," MKS Group said in a note.
Assets in SPDR Gold Trust GLD , the top gold-backed exchange-traded fund, tumbled to 671.77 tonnes, the lowest since mid-August. On Thursday alone, the fund saw outflows of 8.34 tonnes, the biggest daily drop since July 17.
Among other precious metals, with a 10-percent slide, palladium XPD= was on track for its worst week since September 2011, hurt by sharp outflows from exchange traded funds. Prices slightly rebounded on Friday, up 0.5 percent at $606.50 an ounce.
Silver XAG= rose 0.3 percent to $14.99 an ounce and platinum XPT= was up 0.6 percent at $951.25 an ounce. Both metals were headed for their third straight weekly decline.