* Gold dips towards near-six-year low
* Metal down 7.5 percent for the month
* Palladium down 20 pct, platinum 16 pct in November (Updates prices)
By A. Ananthalakshmi
SINGAPORE, Nov 30 (Reuters) - Gold extended losses on Monday, dropping towards its lowest level in nearly six years, and was poised to record its steepest monthly slide in 2-1/2 years on prospects of a U.S. interest rate hike this year.
The precious metal has fallen out of favour as investors position themselves for the first U.S. rate hike in nearly a decade. The Federal Reserve is expected to raise rates at its next policy meeting on Dec. 15-16.
Investors believe gold, as a non-interest-paying asset, will take a hit to demand from higher rates as the dollar gains.
Spot gold XAU= slipped 0.2 percent to $1,055.60 an ounce by 0656 GMT. It had dropped to $1,052.70 earlier in the session, within striking distance of $1,052.46, the lowest since February 2010, reached on Friday.
"With the charts looking increasingly dicey as we head into the Fed policy meeting, just as investment money continues to flee the complex, the odds are good that the $1,000 level is the next stop for (gold) prices," said INTL FCStone analyst Edward Meir.
Bullion has lost about 7.5 percent of its value in November, its biggest monthly dip since June 2013.
Investors are pulling money out of bullion funds, exacerbating the sell-off in gold.
Assets in SPDR Gold Trust GLD , the world's top gold-backed exchange-traded fund, fell to their lowest since September 2008 on Friday. GOL/ETF
The strength in the dollar also kept a lid on any increase in gold prices.
The dollar climbed to a fresh eight-month high against a basket of major currencies on Monday. A robust greenback makes dollar-denominated gold more expensive for holders of other currencies. USD/
"Continued dollar strength will likely put further downwards pressure on the precious metals this week, potentially opening up the 2010 low of $1,045," MKS Group trader Sam Laughlin said.
Among other precious metals, silver XAG= was poised to log its worst month in year, with a near-10 percent drop.
The platinum group metals were the worst performers in the precious group in November. Palladium XPD= has lost 20 percent for the month, while platinum XPT= has lost 16 percent - both biggest monthly drops in four years.
For trading cues this week, bullion traders would be focused on the U.S. nonfarm payrolls report due on Friday. A strong jobs report could seal the case for a rate hike at the Fed's Dec. 15-16 meeting.
The European Central Bank policy meeting on Thursday will also be eyed for impact on the currency markets. The ECB is widely expected to ease policy. urn:newsml:reuters.com:*:nL8N13M30L
PRICES AT 0656 GMT
Metal
Last
Change Pct chg
Spot gold
1055.6
-1.63
-0.15 Spot silver
14.04
-0.01
-0.07 Spot platinum
823.74
-7.26
-0.87 Spot palladium
541.8
-6.2
-1.13 Comex gold
1054.6
-1.6
-0.15 Comex silver
14 -0.008
-0.06
COMEX gold and silver contracts show the most active months