* Spot gold may see resistance at $1,271/oz -technicals
* Palladium hits over one-month high
* SPDR Gold holdings fell 1.40 percent on Thursday
* Platinum hits new 2-week low (Adds comment, updates prices)
By Apeksha Nair
Nov 11 (Reuters) - Gold remained volatile in Asian trade on Friday and was set for its first weekly decline in four, with investors continuing to mull over the economic outlook after Republican Donald Trump won this week's U.S. presidential election.
Spot gold XAU= was up 0.2 percent at $1,262.20 an ounce at 0722 GMT. The metal fell to a more than three-week low at $1,250.70 before rising as high as $1,265.40 earlier in the session. It has declined over 3 percent so far this week.
U.S. gold futures GCcv1 were down 0.4 percent at $1,261.60 per ounce after falling as much as 1.3 percent to a four-week low of $1,250.40 earlier.
The dollar hovered near a 3-1/2-month high versus the yen, after making big gains overnight as the markets prepared for a Trump presidency that could stimulate the U.S. economy fiscally and lift interest rates. USD/
"Gold stayed on the defensive, beset by enhanced growth expectations as Trump's team reassured financial markets and investors took on the view that the pro-growth policies of a new administration were good for paper assets," said James Steel, chief metals analyst for HSBC Securities in New York.
The Federal Reserve could raise interest rates more quickly if Washington used lower taxes or higher spending to boost economic growth, Richmond Fed President Jeffrey Lacker said on Thursday. is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
The dollar index .DXY , which measures the greenback against a basket of major currencies, fell 0.18 percent to 98.607 on Friday.
"Gold is moving according to the dollar. The financial sector seems to have stabilized for a second day on Thursday," Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong, said.
"Some strong physical buying at the lower end is keeping gold from not falling too much. Whenever there is a dip, we have seen strong buying."
"China has increased demand and if gold falls further we could see more price-sensitive buying come into the market," Steel of HSBC added.
SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 1.4 percent to 941.68 tonnes on Thursday from 955.03 tonnes on Wednesday. gold may bounce moderately to resistance at $1,271 per ounce before falling, as it has found a support at $1,255, according to Reuters technical analyst Wang Tao. XAG= was up 1.44 percent at $18.81 an ounce, heading for a fourth consecutive weekly rise.
Platinum XPT= was 0.5 percent higher at $976.50 an ounce after hitting a two-week low of $958.50 earlier in the session.
Palladium XPD= was up 1.06 percent at $695.90 an ounce after rising to its highest since Oct. 5 at $697.90 earlier.