* Gold firms after dropping 0.7 pct in previous session
* Traders await U.S. economic data this week for cues (Adds comment, updates prices)
By A. Ananthalakshmi
SINGAPORE, Sept 28 (Reuters) - Gold extended losses into a second session on Monday ahead of a key U.S. jobs report this week, pressured by worries the Federal Reserve would raise interest rates this year.
Several Fed officials are scheduled to speak this week, keeping the focus of the bullion market firmly on U.S. monetary policy. Traders will also be closely monitoring economic data, including nonfarm payrolls data due on Friday, to gauge the strength of the economy.
Spot gold XAU= had eased 0.3 percent to $1,142.40 an ounce by 0655 GMT. The metal had dropped 0.7 percent on Friday after Fed chair Janet Yellen said the U.S. central bank would begin to raise rates this year.
"Gold remains driven largely by expectations of Fed policy, given the still high uncertainty about the hike date," Barclays (LONDON:BARC) analysts said in a note.
Gold had earlier benefited from ultra-low rates, but the non-interest-paying metal has lost about 3 percent this year on fears that demand could take a hit with higher rates.
Data on Friday supported the view that the Fed could begin raising rates this year. 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
The Fed has said the timing of a rate hike would be data dependent.
"Interest around $1,141 should continue to support gold over the short-term, while $1,155 will provide resistance," said MKS Group trader Sam Laughlin.
Earlier in the month, the Fed delayed a long-anticipated rise in U.S. rates, citing concerns over the global economy and improving investor sentiment towards gold. Holdings in SPDR Gold Trust, the world's top gold-backed exchange-traded fund, rose for a fourth straight session on Friday. GOL/ETF
Hedge funds and money managers raised their bullish bets in COMEX gold futures and in the week to Sept. 22, U.S. Commodity Futures Trading Commission data showed on Friday. ID:nL1N11V219
Among other precious metals, platinum XPT= fell 1 percent to $933.15 on Monday, after posting its biggest weekly drop since July on Friday.
The metal had fallen to a 6-1/2-year low last week on fears that the Volkswagen (XETRA:VOWG) emissions scandal could dent demand for diesel cars, where it is used in catalysts.
Palladium XPD= fell over 1 percent, following a near 10-percent jump last week, its biggest weekly gain since December 2011.
PRICES AT 0655 GMT
Metal
Last
Change Pct chg
Spot gold
1142.4
-3.46
-0.3 Spot silver
15
-0.08
-0.53 Spot platinum
933.15 -10.34
-1.1 Spot palladium
652.22
-9.25
-1.4 Comex gold
1141.7
-3.9
-0.34 Comex silver
14.97 -0.141
-0.93 Euro
1.1171
DXY
96.307
COMEX gold and silver contracts show the most active months