* Gold in sight of 2-week lows touched on Thursday
* Spot gold seen revisiting $1,302 levels - technicals
* SPDR Gold holdings drop 0.4 pct on Thursday
* South Korea, China, Taiwan, Hong Kong closed for holidays (Updates prices)
By Swati Verma and Sethuraman N R
Sept 16 (Reuters) - Gold held steady on Friday amid lower trading activity due to Asian holidays but was set for its first weekly loss in three as investors were choosing more riskier assets such as equities rather than holding value in the yellow metal.
Equity markets were higher after weak U.S. data reduced the already low chance of an interest rate increase when the Federal Reserve meets next week. However, a new Reuters poll of 100 economists showed a median 70 percent chance of an increase in December. MKTS/GLOB is highly sensitive to rising interest rates, which would lift the opportunity cost of holding non-yielding metal.
"We are expecting prices to be volatile especially with the Fed meeting next week. Investors will be analysing every single bit of data that is coming out," said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central.
The chances of an interest rate hike dropped after reports on Thursday showed U.S. retail sales fell more than expected in August and manufacturing output declined as well as rising jobless claims in the latest week. gold XAU= was steady at $1,313.40 an ounce by 0718 GMT. Bullion is on track to end the week down about 1 percent.
U.S. gold futures GCcv1 fell about 0.1 percent to $1,317.10 an ounce.
Spot gold is expected to revisit its Sept. 1 low of $1,301.91 per ounce, as it has broken a support at $1,319, according to Reuters technical analyst Wang Tao. is just following the dollar market. That's the reason for the volatility," a Tokyo-based precious metals trader said.
"The market is mostly going to be short ahead of the Bank of Japan's (BOJ) meeting next week. If the BOJ is going for more easing then it might put pressure on gold in line with a strong U.S. dollar."
The U.S. and Japanese central banks are both holding their policy meetings on Sept. 20-21.
The Bank of Japan will conduct a comprehensive review of its stimulus program after failing to reach its 2 percent inflation target.
Holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.35 percent to 932.23 tonnes on Thursday. GOL/ETF
Holidays in many Asian countries including China are expected to keep volumes subdued in the precious complex.
Spot silver XAG= fell 0.2 percent to $18.91 an ounce.
Platinum XPT= declined 0.3 percent to $1,027.74 after falling to over 2-month lows in the previous session.
Palladium XPD= was down 0.1 percent at $653.90 an ounce.