By A. Ananthalakshmi
SINGAPORE (Reuters) - Gold extended losses to a fifth session on Thursday, falling to a fresh two-week low, as strong U.S. private-sector jobs data bolstered views the Federal Reserve will hike rates this year.
While traders are waiting for U.S. nonfarm payrolls data on Friday before placing big bets, the absence of top consumer China, where markets are shut for a one-week holiday from Thursday, is also hurting prices.
Spot gold eased 0.2 percent to $1,112.06 an ounce by 0653 GMT, after earlier dropping to $1,111.45, its lowest since Sept. 16.
U.S. private employers added a stronger-than-expected 200,000 jobs in September, payrolls processor ADP said on Wednesday. Though other data showed factory activity in the U.S. Midwest contracted, investors cheered the jobs data, sending the dollar up on hopes of a rate hike this year.
"Gold prices came under pressure with upbeat U.S. economic data," said ANZ analysts. "ADP data shows U.S. (nonfarm) payrolls in September could beat forecast estimates."
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Robust nonfarm payrolls could spark another sell-off in gold, as the data could prompt the Fed to raise rates soon.
The U.S. central bank has said the timing of a rate hike is data dependent. Gold has come under pressure from expectations the Fed is set to hike rates this year, potentially lifting the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.
Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.48 percent to 687.42 tonnes on Wednesday, but the gain failed to support prices.
Charts were not looking good for gold either.
The metal may break support at $1,112 and fall towards the next support level at $1,099, said Reuters technicals analyst Wang Tao.
Among other precious metals, platinum fell 0.2 percent to $902.25. It had fallen to $894, its lowest since late 2008, earlier this week on fears that revelations of Volkswagen's falsification of U.S. vehicle emission tests could affect demand for diesel cars.
Platinum is widely used in emissions-controlling automotive catalytic converters, particularly for diesel engines.
Elsewhere, the global silver-coin market is in the grips of an unprecedented supply squeeze, forcing some mints to ration sales and step up overtime while sending U.S. buyers racing abroad to fulfil a sudden surge in demand.
(Reporting by A. Ananthalakshmi; Editing by Joseph Radford and Himani Sarkar)