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UPDATE 3-COMEX gold hit as market awaits data, holiday

(Changes dateline, recasts with closing COMEX, spot prices)

NEW YORK, Nov 25 (Reuters) - New York gold futures fell back Monday on profit-taking at the open of an abbreviated week that will feature a slew of important U.S. economic reports followed by a four-day holiday weekend.

The exchange will be closed Thursday and Friday in observance of U.S. Thanksgiving. In other pre-holiday trade, NYMEX palladium hit a 4-1/2 year low.

A more hopeful outlook for economic recovery in the U.S. sent the dollar to three-week highs against most major currencies, as the market awaits a slew of key economic reports before trading wraps up for Thanksgiving.

That helped take the wind out of gold's sails.

"The dollar was up," explained a broker. "(Gold is) acting goofy -- up $5, down $5. Most of it is rollovers."

December gold settled off $3 at $317.90 an ounce after trading from $321.20 to $316.90, unable to sustain the $3.40 gain it closed with on Friday.

Estimated volume was 50,000 contracts.

Much of the turnover was the rolling of December longs into the February contract before delivery notices start Wednesday. February will become the active contract on Tuesday.

Spot bullion was last at $318.80/8.50, down from Friday's close at $321.10/60. London bullion dealers fixed the afternoon spot reference price at $317.45 on Monday.

The euro drooped overnight to its lowest since the start of the month, making bullion less affordable for European investors and fabricators, and was last quoted at $0.9920/25.

The gold market is seeking neutral territory with few wanting to be short over the weekend with United Nations arms inspectors in Iraq and violence flaring up again in the Kashmir region on the border of nuclear rivals India and Pakistan.

The market was waiting for a first glance at third quarter U.S. Gross Domestic Product figures on Tuesday, to see if the economy was pulling out of a soft patch.

Consumer confidence indicators on Tuesday were also hotly anticipated, likewise Wednesday's personal income, spending and durable goods figures.

December silver slipped 7.0 cents to $4.473 an ounce, in a $4.535 to $4.455 range. Spot silver closed at $4.47/49, off from $4.53/55 late Friday. It fixed at $4.50.

By Wednesday March will be the active silver contract.

PALLADIUM BEATEN BACK

In the platinum group metals, Palladium continued to sag on a dismal outlook for demand. It hit a four-year low in Tokyo as investors on the TOCOM took advantage of low liquidity to knock it lower.

"Nobody wants it, it's a bit like a hot potato and everyone's running away from it," a London trader said.

NYMEX December palladium settled down $8.25 at $263.75 an ounce. It hit $263, the lowest for a front contract since June 1998. Spot palladium was last at $258/266.

The market appears to have concluded that the plan by Russia's Norilsk Nickel to buy U.S.-based Stillwater Mining for $100 million in cash and 876,000 ounces of palladium would not prop up prices.

"With industrial demand for palladium dwindling, with major inventory holders of palladium reportedly selling into the market, and now with 876,000 ounces of palladium more available to the marketplace, it is, of course, no wonder that this market was sold off heavily," wrote Leonard Kaplan, president of Prospector Asset Management in a daily commentary.

January platinum fell $5.30 to $584.60 an ounce. Spot platinum was at $586.60/591.60.