* China returns to market after Golden Week break
* Specs cut net longs in gold and silver for 3rd week
* GRAPHIC-2017 asset returns: http://tmsnrt.rs/2jvdmXl
(Updates throughout, adds LONDON dateline) LONDON, Oct 9 (Reuters) - Gold rose on Monday, erasing all of the previous week's losses, as a steadier dollar and the resilience of a key chart level removed some downward pressure, while the return of Chinese buyers to the market also lent support. Prices fell for a fourth week to hit a two-month low on Friday, after an upbeat reading of U.S. wage growth and unemployment supported expectations for a U.S. interest rate hike in December, pushing the dollar and Treasury yields higher. Gold's resilience above its 200-day moving average at $1,253 an ounce provided some reassurance to buyers, however, helping it rebound. Meanwhile, the dollar came off the boil, steadying below a 10-week high, while geopolitical concerns centred on North Korea and Spain supported prices.
Spot gold was up 0.5 percent at $1,281.52 an ounce at 1025 GMT, while U.S. gold futures for December delivery
were up $8.90 an ounce at $1,283.80. "For the time being, gold may have bottomed out," ABN Amro analyst Georgette Boele said. "On Friday people were very reluctant to buy dollars, even though there were enough signals to do so ... and the dollar has come under some pressure again, which is being reflected currently in gold." "The 200-day moving average has proved to be intact still ... so there were some technical elements playing out," she added. "I think we can go back towards $1,300." Expectations for a Fed rate hike, she added, are still providing some headwinds to gold, which, as a non-yielding asset, tends to suffer as interest rates rise. China's central bank held off from adding to gold reserves for an 11th straight month in September, data showed on Monday. China had been a significant official-sector gold buyer in previous years. On the physical markets, Chinese buyers returned after the Golden Week holiday. "The onshore premium pushed toward $10 on the back of USD/China weakness and continued underlying physical demand kept price action buoyant throughout the afternoon," MKS said in a note. "The concern for bullion will be the strengthening U.S. dollar, with the Fed funds futures now pricing in an 80 percent chance of a December interest rate increase," it said. Speculators cut their net long positions in COMEX gold and silver contracts for the third straight week, in the week to Oct. 3.
In other metals, silver was up 0.6 percent at $16.88 an ounce, while platinum was up 0.4 percent at $916.20 an ounce and palladium was 0.8 percent higher at $927.
(Additional reporting by Apeksha Nair in Bengaluru; Editing by Dale Hudson)