* Spot gold may edge up to $1,276 before falling -technicals
* Gold on Tuesday fell most in one day since Sept 2013
* Silver posted its largest one-day fall since Jan 2015 on Tues (Updates prices)
By Swati Verma and Sethuraman N R
BENGALURU, Oct 5 (Reuters) - Gold rose on Wednesday, recovering after hitting its lowest in more than three months in the previous session, as the U.S. dollar eased from a two-month high and stocks fell.
Spot gold XAU= was up 0.4 percent at $1,272.21 an ounce by 0645 GMT, after dropping more than 3 percent on Tuesday to its lowest since June 24.
U.S. gold futures GCcv1 rose 0.4 percent to $1,274.60 an ounce, after also falling more than 3 percent on Tuesday.
The dollar index .DXY , which measures the greenback against a basket of six major currencies, slipped 0.1 percent on Wednesday. USD/
Asian shares also edged lower on Wednesday and bond yields were near two-week highs. MKTS/GLOB
"Tuesday's fall was really a long liquidation and was probably overdone. If the non-farm payroll data this week is too good, then we might try another low," said Yuichi Ikemizu, head of commodity trading at Standard Bank in Tokyo.
"Still, $1,250 would be a good support. I don't really expect gold to go much lower from here and we could see steady buyback toward $1,300 levels," Ikemizu said.
The drop on Tuesday was bullion's biggest one-day percentage fall since September 2013 and brought spot gold to its lowest level since Britain voted to leave the European Union in June.
"The market is clearly very long and someone started testing the $1,300 levels, and there were more stops than buys," a Hong Kong-based trader said.
Absence of Chinese buyers due to a week-long holiday robbed the market of buyers who might have looked for bargains, the trader said.
On Tuesday, Bloomberg reported that the European Central Bank would likely gradually wind down $90 billion in monthly bond purchases before ending its quantitative easing programme, citing unnamed officials at euro zone central banks. ECB news added fuel to the fire because if the ECB is thinking about tapering, then the path for gold is lower," said Amit Kumar, research head at Adroit Financial Services.
"Easy money taken away is always gold negative."
Later, an ECB media officer tweeted that the central bank's decision-making body had not discussed reducing the pace of its monthly bond buying. gold may edge up to $1,276 per ounce to complete a short-lived bounce before resuming its downtrend towards $1,260, said Reuters' market analyst for commodities and energy technicals Wang Tao. other precious metals, silver XAG= edged up 0.6 percent to $17.88 an ounce, after falling 5 percent in the previous session in its biggest one-day drop since January 2015.
Platinum XPT= gained nearly 1 percent to $990 an ounce, after touching its lowest in more than three months on Tuesday.
Palladium XPD= was down 0.2 percent at $695.40.