* Gold off 1-week high on commods sell-down after US GDP data * Oil drops $1 on recession fears * Nikkei slips 2.7 percent on profit taking (Updates prices) By Lewa Pardomuan SINGAPORE, Oct 31 (Reuters) - Gold slipped on Friday and was on course for its biggest monthly decline since 1983, as oil fell on recession fears, the dollar firmed and stocks reversed gains, forcing investors to cash in to stem losses. U.S. gross domestic product shrank at an annual rate of 0.3 percent for the third quarter -- the sharpest fall in the world's largest economy in seven years -- spurring a broad commodities sell-off on concerns over weakening fundamentals. The U.S. dollar's rebound also weighed. Platinum fell more than 4 percent as slowing economies around the globe and the widespread credit crisis caused the largest auto industry companies to slash full-year profit targets, warn of job losses and push for speedy government handouts. Gold was at $731.45 an ounce, down $4.05 from New York's notional close on Thursday, when it rose for a fourth straight day to its strongest in a week at $776.30 an ounce. "Investors are reluctant to buy too much, in case anything happens. We've seen a little bit of physical selling around $770," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, referring to this week's high. Premiums for gold bars eased to $1.70 an ounce to the spot London prices from $3 last week after holders cashed in on this week's rally. Gold has lost as much as 21 percent of its value this month alone, and is down 12 percent this year. Oil extended losses to below $65 a barrel on Friday and looked headed for its biggest-ever monthly loss, as weak economic data rekindled demand worries, which in theory reduces gold's appeal as a hedge against inflation. [O/R] Gold hit a 13-month low of $680.80 last week after investors sold bullion to pay for margin calls. A recovery in stock markets and firmer oil spurred a rebound in gold this week but technical selling emerged after it failed to sustain Thursday's high. "Only if $775 is breached, then gold would be able to head towards the next resistance at $806," said analyst Pradeep Unni at Richcomm Global Services. "Gains could be quick once $775 is scythed convincingly." Gold, which has benefited from safe-haven buying, fears of rising energy costs and uncertainties in the dollar's outlook, was well below a recod high of $1,030.80 struck in March. The Nikkei <.N225> slipped 2.7 percent on Friday as investors' jitters before a Bank of Japan rate decision led to profit taking. [.T] The euro dipped to $1.2770 , making dollar-priced gold more expensive for holders of other currencies. Platinum was trading at $783.00 ounce, down $34 from New York's notional close. It has lost more than 60 percent of its value since hitting a lifetime high of $2,290 in March, mainly due to worries about falling demand for autocatalysts. As the strong yen forced Japanese carmakers Mazda <7261.T> and Mitsubishi <7211.T> to slash full-year targets, struggling U.S. automakers were looking to obtain billions from the U.S. government to help them survive. [ID:nLU010746] More than 60 percent of global platinum use goes to autocatalysts to clean exhaust fumes. New York gold futures fell $6.7 an ounce to $731.9. Precious metals prices at 0249 GMT Metal Last Change Pct chg YTD pct chg Turnover Spot Gold 731.45 -4.05 -0.55 -12.16 Spot Silver 9.30 -0.36 -3.73 -37.03 Spot Platinum 783.00 -34.00 -4.16 -48.49 Spot Palladium 196.00 -1.00 -0.51 -46.74 TOCOM Gold 2307.00 -142.00 -5.80 -24.61 25848 TOCOM Platinum 2496.00 -254.00 -9.24 -53.25 8795 TOCOM Silver 290.70 -33.00 -10.19 -46.27 436 TOCOM Palladium 622.00 -35.00 -5.33 -53.96 329 Euro/Dollar 1.2851 Dollar/Yen 98.22 TOCOM prices in yen per gram, except TOCOM silver which is priced in yen per 10 grams. Spot prices in $ per ounce. (Editing by Ben Tan)

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