SINGAPORE, Nov 9 (Reuters) - Gold languished near its lowest in three months on Monday following an eight-day losing streak, as surging U.S. nonfarm payrolls boosted expectations of a December rate hike in the United States.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,089 an ounce by 0023 GMT, following its worst week in two years. The metal had dropped to $1,084.90 on Friday, the lowest since August, after U.S. jobs data beat market expectations.

* Gold is just about $12 away from a 5-1/2-year low hit in July.

* Employers outside the farming sector added 271,000 jobs in October, the most in 10 months, and the jobless rate fell to a 7-1/2-year low of 5 percent. Economists had forecast nonfarm payrolls increasing 180,000 last month and the unemployment rate remaining at 5.1 percent. urn:newsml:reuters.com:*:nLNN6MEBHQ

* Policymakers at the U.S. central bank welcomed the data and investors increased bets that the first rate increase in nearly a decade will come next month, sending the dollar higher.

* Futures markets shifted to show a 70 percent probability of a December rate hike, up from 58 percent before the report. urn:newsml:reuters.com:*:nL1N1311M1

* Gold fell as markets believed higher rates would hurt demand for the non-yielding asset.

* Assets in SPDR Gold Trust, the top gold-backed exchange-traded fund, fell 0.40 percent to 669.09 tonnes on Friday, the lowest in nearly three months, as investors exited bullion.

* Hedge funds and money managers cut a bullish stance in COMEX gold as they trimmed a silver net long position from a record high in the week to Nov. 3, U.S. Commodity Futures Trading Commission data showed on Friday. urn:newsml:reuters.com:*:nL1N1312DG

* China likely added about 14 tonnes of gold to its reserves in October, according to Reuters calculations from central bank data on Saturday. urn:newsml:reuters.com:*:nL3N132053

* Among other precious metals, platinum XPT= fell to a one-month low of $930.50 an ounce. Palladium XPD= slid nearly 1 percent, and was trading near a six-week low.

* For the top stories on metals and other news, click TOP/MTL or GOL

MARKET NEWS

* The dollar jumped to a seven-month high on Friday, pushing oil prices lower, and short-term U.S. bond yields rose to the highest in five years after the U.S. jobs data. Asian stocks slipped early on Monday. MKTS/GLOB

DATA AHEAD (GMT)

0700 Germany Trade data Sep

0930 Euro zone Sentix index Nov

1500 U.S. Employment trends Nov

PRICES AT 0023 GMT Metal Last Change Pct chg

Spot gold 1089 0.74 0.07 Spot silver 14.69 -0.04 -0.27 Spot platinum 934.2 -0.8 -0.09 Spot palladium 613.53 -5.47 -0.88 Comex gold 1088.5 0.8 0.07 Comex silver 14.695 0.004 0.03

COMEX gold and silver contracts show the most active months

(Reporting by A. Ananthalakshmi; Editing by Joseph Radford) ((ananthalakshmi.as@thomsonreuters.com; +65 6870 3726; Reuters Messaging: ananthalakshmi.as.thomsonreuters.com@reuters.net; Twitter: @AnanthalakshmiA))

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Keywords: GLOBAL PRECIOUS/