* Gold extends losses for sixth day to 1-month low
* Yellen points to possible December "liftoff"
* Fed's Dudley says December rate hike "live possibility"
* GRAPHIC-2015 asset returns: http://link.reuters.com/dub25t (New throughout, updates prices and market activity; adds comment, second byline, NEW YORK dateline)
By Marcy Nicholson and Jan Harvey
NEW YORK/LONDON, Nov 4 (Reuters) - Gold fell to a one-month low on Wednesday, dropping for the sixth straight session as the dollar shot to a three-month high after U.S. Federal Reserve Chair Janet Yellen raised expectations for a December interest rate increase.
In her first public comments since Fed policy makers met last week, Yellen pointed to a possible December "liftoff". urn:newsml:reuters.com:*:nL1N12Z20G
New York Fed President William Dudley later told reporters that the December meeting is a "live possibility" for raising U.S. interest rates for the first time in a decade. urn:newsml:reuters.com:*:nL1N12Z2O1
Spot gold XAU= fell as much as 1 percent to $1,106 an ounce, the lowest since Oct. 2, and was down 0.8 percent at $1,108.10 an ounce at 3:20 p.m. EST (2020 GMT).
U.S. gold futures GCv1 for December delivery settled down 0.7 percent at $1,106.20 an ounce.
"The main driver behind the down move is that more market participants now believe that the Fed will begin raising rates this year," Commerzbank (DE:CBKG) analyst Daniel Briesemann said.
Wall Street stocks, unable to follow a rally in European and Asian stocks, fell further after Yellen's comments. The U.S. dollar .DXY jumped 0.9 percent against a basket of major currencies, building on a rise that followed earlier data showing stronger-than-expected private-sector U.S. job growth. MKTS/GLOB
Oil and other commodity markets tumbled, with the 19-market Thomson Reuters CoreCommodity Index .TRJCRB falling 1.7 percent.
"Quite often whenever the U.S. dollar rallies and interest rates move up, that tends to be a poisonous environment for the commodity complex," said Bart Melek, head of commodity strategy for TD Securities in Toronto.
"The probability of a rate hike has grown, at least according to the Fed Fund futures curve. It's at 60 percent and not that long ago it was around 30."
Gold, a non-yielding asset, tends to benefit from a low interest rate environment. It has fallen 5 percent in the six sessions since the Fed's Oct. 28 meeting, when central bankers left the door open to a possible rate hike.
Traders are now awaiting U.S. non-farm payrolls data later this week.
Gold has also come under pressure from outflows from exchange-traded funds (ETFs), with holdings of the largest, New York-listed SPDR Gold Shares GLD , down another three tonnes on Tuesday. GOL/ETF
Interest in gold picked up overnight in some parts of Asia, MKS said in a note on Wednesday.
Silver XAG= was down 1.4 percent at $15.05 an ounce, while platinum XPT= was down 0.9 percent at $951 an ounce and palladium XPD= was down 2.1 percent at $627.75 an ounce.