PRECIOUS-Gold falls to 7-week low as dollar firms

* Dollar index near 7-week high

* Spot gold may seek support around $1,260-$1,263/oz -technicals

(Adds comment, updates prices) Oct 3 (Reuters) - Gold edged down to a 7-week low on Tuesday, as equities and the dollar were buoyed in Asian trade

Spot gold was down 0.1 percent at $1,269.20 an ounce

at $1,267.76.

U.S. gold futures for December delivery shed 0.3

percent to $1,272 an ounce. "Gold no doubt is struggling for the moment as at least three variables are arrayed against it, namely, a stronger dollar, a higher rate environment and possibly a reduction in tensions with North Korea if tentative contacts revealed over the weekend amount to something," INTL FCStone analyst Edward Meir said in a note. "We see gold possibly getting to a low of $1,245 before running into some credible support."

The dollar on Tuesday rose versus the yen and climbed

to its highest since mid-August against a basket of major

currencies , extending gains from the previous session

when it rose on higher U.S. Treasury yields and strong manufacturing data. Proposed U.S. tax reforms and growing odds of a December interest rate hike by the Federal Reserve have also helped support the greenback. Dallas Fed President Robert Kaplan on Monday said the central bank would need to "look hard" at whether it should raise rates in December, while Minneapolis Fed President Neel Kashkari earlier that day said he would want to wait on rate hikes. Higher interest rates tend to boost the dollar and push bond yields up, adding pressure on greenback-denominated, non-yielding gold. Meanwhile, the White House on Monday ruled out talks with North Korea except to discuss the fate of Americans held there, again appearing to rebuke Secretary of State Rex Tillerson who said Washington was directly communicating with Pyongyang on its nuclear and missile programs. Spot gold may find support in a zone of $1,260-$1,263 per ounce, and then start a decent bounce, Reuters technicals analyst Wang Tao said.

In other precious metals, silver had edged down 0.2

percent to $16.51 an ounce after earlier matching its lowest since Aug.9, which it originally hit yesterday.

Platinum and palladium were both 0.3 percent

lower at $908.25 and $906.75 an ounce respectively, having hit price parity for the first time in 16 years last week.

(Reporting by Apeksha Nair in Bengaluru; Editing by Joseph Radford)