UPDATE 4-Gold up on bargain hunting, platinum climbs

* Gold rises 1 pct as investors take advantage of low prices

* Platinum, palladium climb as Lonmin bid boosts confidence

* SPDR Gold Trust New York holdings slip 2.2 percent

(Recasts, updates throughout, changes dateline, pvs SINGAPORE)

By Jan Harvey

LONDON, Aug 6 (Reuters) - Gold rose 1 percent in Europe on Wednesday as investors took advantage of a three-day fall in prices to buy below the key $900 an ounce support level.

Platinum also recovered after a sharp dip, which saw the white metal shed more than 10 percent in three sessions, as Xstrata's $10 billion bid for Lonmin boosted confidence in the market and a strike began in major producer South Africa.

Gold XAU= rose to $883.80/884.80 an ounce at 1014 GMT from $876.35/877.95 late in New York on Tuesday.

"Clearly there is some opportunistic buying going on at the moment," said Daniel Hynes, metals strategist at Merrill Lynch.