* Gold hits weakest in almost 2-weeks on weak oil, shares * Nikkei drops 6 pcton worries over global economic downturn * The euro edges up against the dollar (Updates prices) By Lewa Pardomuan SINGAPORE, Dec 2 (Reuters) - Gold slipped to its weakest in almost two weeks on Tuesday as oil extended losses and equities tumbled after a report confirmed the U.S. economy was in its third-longest recession since the Great Depression. Gold posted its biggest daily percentage fall in nearly eight weeks on Monday as fears of severe recession reduced investors' appetite for risky assets and the Reuters/Jefferies CRB .CRB index, a global commodities benchmark, tumbled more than 3 percent. Gold was trading at $768.10 an ounce, down $2.50 from New York's notional close. It had dropped to a near two-week low of $762.55 in early trade on Tuesday, then rebounded on bargain hunting and a firmer euro before slipping back again. "We did see buying from jewellers as well as investors in Japan and other parts of Asia but they are selling back. I think the whole picture is still uncertain," said a dealer in Hong Kong. "People are confused. Sentiment can change on a daily basis." Oil CLc1 struck a 3-1/2-year trough below $48 a barrel after OPEC's decision to delay any further output cut until mid-December, which in theory reduced gold's appeal as a hedge against inflation. [O/R] The MSCI index of Asia-Pacific stocks outside Japan .MIAPJ0000PUS dropped about 4.5 percent, taking this year's losses to nearly 60 percent, while Japan's Nikkei .N225 tumbled more than 6 percent, after Monday's sell-down on a dour global economic outlook. [MKTS/GLOB] The euro edged up to $1.2624 after falling in New York. [USD/] Gold has regained some strength since hitting a 13-month low of $680.80 in October, but dealers said it was hard to tell whether an increase in net long positions in New York was a sign of an improving sentiment. Gold was still well below a record of $1,030.80 in March. "The increase in net long positions in New York could mean some people are increasingly bullish on gold. I guess we will now be looking at the $750 regions for support now," said a dealer in Singapore, referring to the 25-day moving average. "But do remember that this is for the week November 25, so it's a couple of days delayed," he said. Speculative gold players in the non-commercial category boosted their net long positions to 81,872 on gold futures traded on COMEX at Nov. 25, up from 64,829 long lots at Nov. 18, Commodity Futures Trading Commission data showed. For speculative length in U.S. commodity markets, click: here RELENTLESS BAD NEWS In a sign of how drastically economic worries are crimping demand, U.S. manufacturing in November fell to its weakest in 26 years. A similar reading on euro zone factories sank to a record low. [ID:nL1119152 ] Adding to the gloom, the U.S. economy was confirmed to have fallen into a recession nearly a year ago and Federal Reserve Chairman Ben Bernanke said the central bank is mulling extreme policy measures such as buying government bonds to revive growth. [ID:nN01516053] Global central banks are slashing rates and unveiling new steps to unclog credit markets and contain the economic damage from the 15-month crisis. The Reserve Bank of Australia chopped rates by a full percentage point to 4.25 percent on Tuesday, a 6-1/2-year low. [nSYD115800] Platinum bounced after posting its daily percentage drop since mid-September on Monday and dealers expected selling in Tokyo to slow down due to narrowing spread between the white metal and gold. Tokyo futures <0#JPL:> often set the tone for spot market. "A sell-off in platinum futures due to global demand concerns has come to a halt now that the prices were down to the same level as gold futures, said Hitoshi Inagawa, senior manager at Yutaka Shoji Co. Platinum was trading at $797.50 an ounce, up $7.00 from New York notional close. The spread between platinum and gold dropped to less than $50, from more than $1,000 in March, when platinum also hit alifetime high of $2,290. New York gold futures GCZ9 fell $8.3 an ounce to $768.7 in electronic trade. Precious metals prices at 0714 GMT Metal Last Change Pct chg YTD pct chg Turnover Spot Gold 768.10 -2.50 -0.32 -7.76 Spot Silver 9.29 0.03 +0.32 -37.10 Spot Platinum 797.50 7.00 +0.89 -47.53 Spot Palladium 172.50 1.00 +0.58 -53.13 TOCOM Gold 2290.00 -140.00 -5.76 -25.16 60205 TOCOM Platinum 2397.00 -85.00 -3.42 -55.10 21150 TOCOM Silver 275.50 -25.90 -8.59 -49.08 754 TOCOM Palladium 533.00 -37.00 -6.49 -60.55 550 Euro/Dollar 1.2616 Dollar/Yen 93.18 TOCOM prices in yen per gram, except TOCOM silver which is priced in yen per 10 grams. Spot prices in $ per ounce. (Additional reporting by Risa Maeda in Tokyo; Editing by Ben Tan)

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