* Gold down more than 1 pct to January 2017 low

* Platinum hits lowest since November 2008

* Silver touches lowest since April 2016

* GRAPHIC-2018 asset returns: http://tmsnrt.rs/2jvdmXl

(Updates prices, adds platinum quote)

By Zandi Shabalala

LONDON, Aug 15 (Reuters) - Gold fell to a more than 18-monthlow on Wednesday as the dollar climbed towards its highest inover a year on concerns about global market contagion triggeredby recent declines in the Turkish lira.

The advancing dollar and worries of continued oversupplyalso pushed platinum and palladium to their lowest sinceNovember 2008 and July 2017 respectively.

Spot gold XAU= was down 1 percent at $1,181.41 an ounce by1338 GMT, after hitting its lowest since early January 2017 at$1,180.48.

U.S. gold futures GCcv1 were down 1.1 percent at $1,187.70an ounce.

"The story for gold is very much about dollar strength andemerging market weakness," said Mitsubishi analyst JonathanButler.

"It's risk aversion, which is something that should besupportive of gold, but ... this is happening in an environmentwhere the dollar is looking very strong relative to other majorcurrencies and emerging market currencies."

The yellow metal has declined about 9 percent this year,pressured by rising U.S. interest rates, a soaring dollar and afailure to capitalize on its traditional role as a hedge againstglobal uncertainties.

Investors have opted for U.S. Treasuries, seen as theultimate safe haven, which meant they had to buy dollars, whilebearish sentiment on gold has led to liquidations inexchange-traded funds (ETFs) and a record level of shortpositions. GOL/ETF CFTC/

LOWER RATES

The dollar rose to its highest level since June 2017 onworries over President Tayyip Erdogan's calls for lower interestrates and fraying ties between the United States and Turkey, aNATO ally. urn:newsml:reuters.com:*:nL4N1V608I FRX/ .DXY

The greenback, in which gold is priced, has also beenbolstered by a fall in the euro, which has been dogged byconcerns over the European banks' exposure to Turkey.

Support is at a recent low of $1,191.80, followed by the$1,150 level, while resistance is at $1,219.60, ScotiaMocattasaid in a note.

Spot platinum XPT= slumped to its lowest since November2008 at $764 per ounce. It was last trading at $780, down 2.2percent. Palladium XPD= was down 4.5 percent at $854, itslowest since July 2017.

The world's top producer of platinum is South Africa, whichsaw the rand hit a two-year low this week, reducing costs formining companies in the country.

"Most of the miners' costs are in rands and as the randweakens further that is clearly working against mine closures,"said Julius Baer analyst Carsten Menke.

Spot silver XAG= was 1 percent lower at $14.80, afterfalling to its lowest since April 1 2016, at $14.76.

(Reporting by Zandi ShabalalaEditing by David Holmes) ((zandi.shabalala@tr.com; +44 207 542 5937; Reuters Messaging:zandi.shabalala.thomsonreuters.com@reuters.net))