* U.S. 30-year government bond yields jump
* Weak rand may prompt platinum ETF liquidation -Commerzbank
* Platinum, palladium at July lows
(Recasts first paragraph, updates prices, adds comment, second
byline, NEW YORK dateline)
By Marcy Nicholson and Eric Onstad
NEW YORK/LONDON, Sept 13 Gold fell for the fifth
straight day on Tuesday, weighed down by a firmer dollar and a
jump in Treasury yields as well as uncertainty about whether the
U.S. central bank will raise interest rates next week.
"It was looked at as a safety trade early in the morning. As
the day weighed on and the Treasury auction failed to produce
the results expected, we saw yields jump up and the gold market
fell," said Phillip Streible, senior market strategist for RJO
Futures in Chicago.
Some investors withheld bids for the latest supply of U.S.
30-year government bonds, propelling their yields to the highest
levels since Britain's vote to leave the European Union in late
World stock markets and energy prices fell as the U.S.
dollar rose 0.5 percent.
Spot gold was down 0.7 percent at $1,317.47 an ounce
by 3:03 p.m. EDT (1903 GMT). U.S. gold futures settled
down 0.14 percent at $1,323.70 per ounce.
A member of the U.S. Federal Reserve's rate-setting
committee (FOMC) said on Monday the case for tightening monetary
policy was "less compelling," leading traders to trim the odds
of a September rate rise to 15 percent from 24 percent on
Friday, according to CME Group.
"We're treading water today after the bounce we received
from the FOMC comments yesterday, but gathering from the limited
impact we've seen the market is still probably concerned about
the potential for a rate hike later this month," said Ole
Hansen, head of commodity strategy at Saxo Bank in Copenhagen,
before prices fell to session lows.
The Fed will have a two-day meeting next week.
Platinum dropped 2.1 percent to $1,032, after falling
to $1,027.50, right around the 200-day moving average and the
lowest price since July 1.
"The weak rand may also prompt South African investors to
further reduce their platinum and palladium ETF (exchange-traded
fund) holdings," Commerzbank said in a note.
Palladium fell as much as 1.7 percent to $649.22, the
lowest since July 20.
"PGM (platinum group metals) prices are expected to improve
modestly on structural drivers into fourth-quarter 2016," Citi
Research said in a note. "Given strong automotive demand in
terms of increased loadings in Europe as well as robust
production volumes in China, we believe the PGMs should maintain
double-digit returns for the year."
Spot silver declined 1.2 percent to $18.83 an ounce,
after hitting a more than one-week low of $18.69 in the previous
(Additional reporting by Nallur Sethuraman and Swati Verma in
Bengaluru; Editing by David Clarke and Will Dunham)