* Spot gold may drop to $1,261-$1,267/oz range- technicals
* GRAPHIC-Platinum/palladium ratio: http://tmsnrt.rs/1QjSZAC
* Specs reduce net longs in gold
(Adds comment, updates prices) Oct 2 (Reuters) - Gold slipped to its lowest in nearly seven weeks early on Monday as the U.S. dollar rose and equities gained, while growing expectations for a Federal Reserve interest rate hike in December also added to pressure.
Spot gold was down 0.3 percent at $1,274.90 an ounce
U.S. gold futures for December delivery shed 0.5
percent to $1,277.80. The metal recorded its biggest monthly decline so far this year in September, despite netting a quarterly rise of nearly 3 percent partly due to geopolitical tensions including North Korea's missile tests. "The dollar is a bit stronger this morning and put gold under pressure first thing this morning so we took out Friday's low. China's out for Golden week so it's just moving on the back of what the dollar yen's doing," a Hong Kong-based trader said. "Gold might just keep drifting lower until the Chinese return. There's nothing really to excite gold at the moment." U.S. President Donald Trump on Sunday dismissed the prospect of talks with North Korea as a waste of time a day after his own secretary of state said the United States was maintaining open lines of communication with North Korea. The dollar stood tall against the euro and other major counterparts on Monday and Asian shares rose as investors kept an close eye on an independence vote in Spain's Catalonia.
The U.S. currency recorded its best week of the year on Friday, despite benign inflation data for August, as expectations that the Fed would raise interest rates again in December loomed large after Fed Chair Janet Yellen said the central bank planned to stay on its current rate hike path.
Philadelphia Fed President Patrick Harker said Friday he still has "pencilled in" a rate hike in December, and three more hikes next year. Higher interest rates tend to boost the dollar and push bond yields up, weighing on greenback-denominated gold. Spot gold may drop into a range of $1,261-$1,267 per ounce, as it has cleared a support at $1,277, Reuters technicals analyst Wang Tao said. Speculators reduced their net long positions in COMEX gold and silver contracts in the week to Sept. 26, U.S. data showed on Friday.
Silver and palladium were little changed at $16.60 an ounce and $934.30 an ounce, while platinum lost
0.2 percent at 907.40 and continued to trade at a discount to platinum for a fourth consecutive day.
(Reporting by Apeksha Nair in Bengaluru; Editing by Joseph Radford)