* Gold leads metals into negative territory
* Investors adjusting to tough bank capital rules
* Strong U.S. data raises chances of Fed rate hike (Adds analysis, quotes, stocks on the move)
SYDNEY/WELLINGTON, July 24 (Reuters) - Australian shares traded slightly lower on Friday, see-sawing in a tight range as weaker commodity prices and declines on most major overseas markets gave investors little reason to buy.
Resources companies posted the biggest losses on persistent weakness in the spot prices of oil, gold and other key metals, while financials stocks staged a mild recovery as investors grew more comfortable with tough new capital requirements for property investment loans.
The S&P/ASX 200 index .AXJO edged briefly into positive territory in the morning session before backtracking to be down 2.8 points or less than 0.1 percent at 5587.1 by 0229 GMT, its third consecutive day of losses.
"The market is treading water. It's been a volatile week," said Steven Daghlian, a market analyst at Commonwealth Securities.
"The mining sector has been holding back the market and it continues with falls in commodities like oil and iron ore."
Gold producer Newcrest Mining NCM.AX was among the biggest losers, dropping 6.3 percent as the gold price held near a five-year low amid expectations that strong U.S. economic data will curb its safe-haven appeal. ID:nL3N10408C
Iron ore major BHP Billiton BHP.AX and rival Rio Tinto RIO.AX each dipped 0.8 percent as the steel-making ingredient also faces downward pricing pressure due to concerns of sluggish demand from China.
Bank stocks fared better after months of heavy selling in anticipation of the changes in capital requirements for property investment loans.
Westpac Banking Corp WBC.AX was up 0.4 percent, while Commonwealth Bank of Australia CBA.AX , National Australia Bank NAB.AX and Australia and New Zealand Banking Group ANZ.AX were each up 0.2 percent as banks imposed higher interest rates on property investment loans. ID:nL3N1041GP
Retail giants Woolworths WOW.AX and Wesfarmers WES.AX , which owns supermarket chain Coles, were both down 1 percent.
New Zealand's benchmark NZX50 share index .NZ50 was marginally softer, easing 0.1 percent to 5,895.23, but in sight of the lifetime high touched on Wednesday.
Falls among some of the top stocks weighed on the market, with telecommunications company Spark SPK.NZ and Fletcher Building FBU.NZ both down about 0.7 percent.
Contact Energy CEN.NZ gained 0.8 percent as speculation abounds that its majority shareholder Origin Energy ORG.AX plans to sell some or all of its 53 percent stake.
Meridian Energy MEL.NZ fell 1.4 percent as the deadline for a decision about its supply contract with the Rio Tinto owned aluminium smelter is due early next month.
Honey and health products producer Comvita CVT.NZ was up 3 percent, buoyed by a forecast of a 35 percent lift in net earnings next.
Milk producer A2 Milk ATM.NZ , which knocked back a potential takeover offer this week, was up 2.5 percent.
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