* Gold hits lowest since Oct. 17 at $1,276.24/oz

* Dollar strengthens on Fed tapering expectations

* Physical demand in Asia remains subdued - dealers

(Updates prices, adds comment)

By Clara Denina

LONDON, Nov 12 (Reuters) - Gold hit a 3-1/2 week low on Tuesday, falling for the fourth straight session as the dollar strengthened and expectations increased that the U.S. Federal Reserve will soon scale back monetary stimulus.

The metal has lost nearly 3 percent over the past four sessions, as data on strong U.S. economic and jobs growth boosted speculation that the Fed will taper its $85 billion-a-month bond-buying programme by the end of the year.

"The tapering debate and the uncertainty around its timing is still key to the gold market," Citi analyst David Wilson said.

"And the tapering issue is a dollar issue because once everybody gets a sense of when tapering is going to be then the dollar will just get stronger and stronger and gold will suffer."

A stronger U.S. currency makes dollar-denominated assets like gold more expensive for foreign investors.

Spot gold XAU= hit its lowest since Oct. 17 at $1,276.24 an ounce in earlier trade. It was down 0.2 percent at $1,280.16 by 1446 GMT. Technical support was pegged in the $1,277-$1,269 area, analysts said.

Comex gold futures GCcv1 for December edged down $2.10 to $1,279.00 an ounce.

The dollar .DXY rose 0.1 percent against a basket of currencies, edging back towards a two-month peak struck on Friday.

The 10-year U.S. yield US10YT=RR rose towards a near two-month high at 2.76 percent.

As gold pays no interest, the rise in returns from U.S. bonds and other markets is seen as negative for the metal.

Gold has fallen nearly a quarter this year on expectations that the Fed would cut back on its bond purchases, so any delay could provide a boost to prices.

However, gains could be kept in check by weakness in technical charts and physical demand.

Gold's drop below $1,300 on Friday has failed to attract buyers in Asia as customers expect prices to weaken further. Dealers say buyers would come in as prices fall towards $1,200.

Physical demand on its own typically does not drive prices.

"Price action is likely to remain heavy, with little sign yet of a boost in physical demand," ANZ said in a note.

BNP Paribas on Monday raised its year-end gold price outlook to $1,415 an ounce but lowered its 2014 forecast to $1,095, citing a recovery in the U.S. economy and lackluster demand.

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Spot silver XAG= fell 0.9 percent to $21.11 an ounce, having touched a three-and-a-half-week low of $21.02 in earlier trade.

Spot platinum XPT= was up 0.2 percent at $1,431.49 an ounce. Spot palladium XPD= fell 1.3 percent to $741.47 an ounce.

Refiner Johnson Matthey said on Tuesday that strong investment and industrial demand will push the platinum market in 2013 into its biggest deficit for 14 years. ID:nL5N0IX1W1

(Additional reporting by A. Ananthalakshmi in Singapore; Editing by David Evans, Ron Askew)

((clara.denina@thomsonreuters.com)(+44 207 542 9420)(Reuters Messaging: clara.denina.thomsonreuters.com@reuters.net))

Keywords: MARKETS PRECIOUS/