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PRECIOUS-Gold slips as stocks surge; on track for 1st weekly loss in seven

Published 15/07/2016, 05:39 pm
© Reuters. PRECIOUS-Gold slips as stocks surge; on track for 1st weekly loss in seven
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* Gold on track for first weekly decline in seven

* Palladium touches highest since early November

* Asian shares rise to nine-month highs (Recasts, updates prices)

By Vijaykumar Vedala

BENGALURU, July 15 (Reuters) - Gold prices dipped on Friday and were set for the first weekly loss since May as Asian shares surged to a nine-month high and the dollar hit a three-week top against the yen on better-than-expected Chinese data, lifting risk sentiment across the board.

Asian shares were on track for a solid weekly rise as economic data from China boosted risk appetite that was already buoyant after record highs on Wall Street. .N MKTS/GLOB dollar was on track to gain more than 5 percent for the week against its Japanese counterpart JPY= . USD/

Spot gold XAU= eased 0.2 percent to $1,332.70 per ounce by 0700 GMT. Bullion closed about 0.6 percent lower on Thursday after hitting its lowest since June 30 earlier in the session.

The metal has fallen about 2.5 percent so far this week and is on track for its first weekly decline since the week ending May 27.

U.S. gold GCcv1 inched up 0.1 percent to $1,333.30 an ounce.

"The precious metals are taking a breather. They have done really well this year and went up too quickly. So retrenchment is only right to happen. Also, stock markets are doing well at this point of time," said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central.

"Gold will be under pressure for now and might possibly retest the lows from end-June if the U.S. retail data (for June) due later today is better than expected."

Three Federal Reserve policymakers on Thursday expressed the view that there was no hurry to raise U.S. interest rates in the wake of the UK decision to leave the European Union, despite signs that the U.S. economy is near full employment. in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.25 percent to 962.85 tonnes on Thursday. GOL/ETF

"Gold prices seem vulnerable to the downside as the financial markets look more confident. The path of least resistance appears lower, for now. The net long spec positions are historically high and may need to be pared back before gold can advance," HSBC analyst James Steel said in a note.

Spot gold is expected to fall to $1,313 per ounce, as suggested by two sets of Fibonacci retracement analysis, Reuters technical analyst Wang Tao said on Friday. other precious metals, spot palladium XPD= marked its highest since early November, touching a session high of $652.

Spot silver XAG= was down 0.3 percent at $20.24 an ounce. It was marginally lower for the week, and near its first weekly loss in seven.

Spot platinum XPT= slipped 0.5 percent to $1,093.74, and was seen flat for the week.

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