* US payrolls data due out on Friday

* Rosy payrolls data will be bearish for gold - analyst

* Silver in India to benefit under Modi government - analyst

June 4 (Reuters) -

Gold prices dipped on Tuesday after rising 1% in the previous session as the U.S. dollar firmed while investors awaited data due this week for clues on the health of the jobs market and if it will make a case for Federal Reserve interest rate cuts.

Spot gold was down 0.8% at $2,332.43 per ounce, as of 1008 GMT. Prices touched their lowest level in nearly a month on Monday before closing 1% higher.

"Gold prices have suffered with the bouncing back of the US dollar after a few days of weakness," said Ricardo Evangelista, senior analyst at ActivTrades.

As the U.S. currency found a footing, the dollar index was up 0.2% at 104.30, having fallen to its lowest since mid-April overnight at 103.99.

Evangelista said cracks were appearing in the American economy, as seen in

yesterday's manufacturing data

, creating a window of opportunity for the Fed to lower interest rates.

"With uncertainty around geopolitics and global economic growth alongside strong

government

purchases, there is a good chance that gold prices are likely to go back to the maximums reached a few weeks ago and even beyond," Evangelista said.

Gold hit an all-time high of $2,449.89 on May 20.

Markets will watch for ADP employment report due on Wednesday before Friday's non-farm payrolls data.

Meanwhile, in major gold consumer India, share markets sold off sharply after early vote counting showed Prime Minister Narendra Modi's Bharatiya Janata Party (BJP)-led alliance was not headed for a landslide win as predicted.

Gold demand will be subdued because of the restriction on cash transactions during the election period, but after that "we can expect some kind of pent-up demand because the wedding season is still not yet over", said ANZ commodity strategist Soni Kumari.

"If equities continue to crash, there will be some funds going into gold as well."

Among other precious metals, spot silver fell 3% to $29.84 per ounce, platinum was down 0.9% at $1,002.71 and palladium lost 1% to $908.61.

Silver is seen benefiting from the Modi government's focus on industrial growth including solar projects, said Ajay Kedia, director at Kedia Commodities, Mumbai.

(Reporting by Harshit Verma and Sherin Elizabeth Varghese in Bengaluru; Editing by Ed Osmond)