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Gold falls by 2% to two-week low

* Platinum near three-year low

LONDON: Gold slipped to two-week lows on Friday as the dollar rallied and the market waited for an expected vote by the US Congress on a $700 billion bailout package for financial firms.

Platinum hit a near-three year low of $936.50 an ounce. The metal used in autocatalysts is down more than 50 percent since a record high of $2,290 in March on economic weakness and falling car sales, especially in the United States.

The dollar rallied after data showed the September US jobless rate unchanged at 6.1 percent, despite employers cutting payrolls at the steepest rate in 5-1/2 years.

Spot gold fell two percent to $818.70 an ounce, the lowest since September 17. It was at $826/828 an ounce at 1334 GMT compared with $835 late in New York on Thursday. A weaker dollar makes commodities priced in dollars cheaper for holders of other currencies, while gold is often used as a hedge against financial market trouble and price pressures.

“Although sentiment towards gold has improved significantly of late amid the financial market turmoil and concerns over the broader economy, prices have not continuously outperformed,” said Barclays Capital in a research note. Gold prices are down nearly 20 percent since a record high of $1,030 an ounce seen on March 17.

Platinum was at $946/966 an ounce from $960 late in New York on Thursday. More than 60 percent of global use in platinum goes to auto catalysts. Platinum is also used in jewellery.

Major automakers reported plunging US sales for September, led by a 34 percent slide at Ford Motor Co, as the escalating credit crisis hit the industry and raised new doubts about when the world’s auto market would stabilise.

Silver was at $11.16/11.26 an ounce from $10.79 on Thursday and palladium at $192/202 from $191.50. reuters

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