LONDON, Sept 8: Gold extended losses to touch one-week lows on Friday after slipping more than two per cent a day earlier on a stronger dollar, and dealers said the metal might decline further on technical selling.Last week's one-month low of $606.80 an ounce might trigger stop-loss selling, but prices around $600 were expected to lift physical buying and bargain hunting, they said.

Some investors place an order to sell a commodity when prices reach a certain level in an attempt to limit losses.

Spot gold fell as low as $611.10 an ounce and was quoted at $611.80/612.80 by 1002 GMT, down from $617.50/618.50 late in New York on Thursday.

Gold is likely to see further consolidation in the coming sessions as the firmer mood in the dollar looks to weaken short-term sentiment, James Moore, precious metals analyst said.

The market may watch oil and currency markets for clues in the near term. Gold often moves in the opposite direction to the dollar and is also seen as a hedge against inflation.

In other precious metals, silver fell to a one week low of $12.21 an ounce and was last quoted at $12.24/12.31, against $12.56/12.63 in New York.

Platinum fell to $1,238/1,243 an ounce from $1,250/1,255, while palladium was at $338/343 an ounce, versus $341/346 in the US market.—Reuters