PRECIOUS-Gold rebounds after US GDP but set for weekly loss

* Gold set for first three-week drop in over a year
* Doubts over Fed stimulus trigger losses
* Bullion could face technical pressure under $1,800
* Coming up: US personal income, Chicago manufacturing
Monday

(Updates prices)
By Frank Tang
NEW YORK, Oct 26 (Reuters) - Spot gold prices eked out small
gains on Friday after data showed U.S. economic growth picked up
in the third quarter, but the metal was heading for its first
three-week loss in more than a year on uncertainty over the
future of the U.S. Federal Reserve's monetary stimulus.
Bullion reversed early losses after the U.S. Commerce
Department said gross domestic product expanded at a
better-than-expected 2 percent annual rate, driven by a late
burst of consumer spending.
Analysts said, however, that uncertainty over global
economic recovery and questions on the future of U.S. monetary
policy that has been ultra-loose under Fed Chairman Ben Bernanke
could dent gold's appeal as an inflation hedge.
"I don't believe gold is able to rally off of that (GDP)
data for now. Gold is a momentum asset and its momentum is not
there right now," said Jeffrey Sica, chief investment officer at
SICA Wealth, which manages more than $1 billion in assets.
Spot gold edged up 0.02 percent at $1,712.23 an ounce
by 2:17 p.m. EDT (1817 GMT).
Spot bullion was set for a weekly drop of 0.5 percent, which
would mark its first three-week consecutive loss in more than a
year. Gold posted a four-week decline after a rally to a record
above $1,920 an ounce in September 2011.
U.S. COMEX gold futures for December delivery settled
0.06 percent lower at $1,711.9 an ounce, with trading volume on
track to finish below its 30-day average, preliminary Reuters
data showed.
Traders said the 0.7 percent decline in the December price
this week stemmed partly from concerns over a report that
Bernanke has told close friends that he probably will not stand
for a third term at the central bank even if President Barack
Obama wins the Nov. 6 election.
"Without Bernanke, monetary stimulus from the Federal
Reserve could be greatly reduced, and that will weigh on the
price of gold," Sica said.
Gold's outlook hinges on uncertainty related to the U.S.
election and the so-called "fiscal cliff", a series of automatic
spending cuts and tax increases in 2012 if Congress fails to
reach a deficit-reduction deal by the end of the year.
On charts, gold has come under technical pressure after it
several times ran near formidable resistance at $1,800, which it
has not broken since November 2011, and failed each time, said
Adam Sarhan, CEO of Sarhan Capital.
Silver was down 0.09 percent at $32.04 an ounce.

MOMENTUM SLOWS
Bullion rallied to an 11-month peak above $1,795 an ounce in
early October after the Fed's latest program of purchasing
mortgage-backed debt stirred inflation worries.
Momentum has since stalled, with weak global economic data
helping send prices below $1,700 this week, when U.S. durable
goods data showed the first cutbacks in investment in more than
a year by cautious businesses.
Year-to-date, gold is up nearly 10 percent, on track to gain
for a 12th consecutive year. Bullion's gains in the last several
years have largely been powered by economic uncertainty related
to the Fed's bond-buying to stimulate growth.
Platinum group metals are on track to fall more than 3
percent this week as economic worries and easing supply fears
from top producer South Africa triggered heavy selling.
Platinum dropped 1.38 percent to $1,546.25 an ounce
and palladium fell 1.28 percent to $594.0 an ounce.

2:49 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold DEC 1711.90 -1.10 -0.1 1701.40 1719.90 117,108
US Silver DEC 32.036 -0.042 -0.1 31.600 32.380 33,465
US Plat JAN 1546.00 -22.80 -1.5 1540.90 1579.50 11,161
US Pall DEC 595.40 -9.10 -1.5 594.50 609.15 3,392

Gold 1711.50 0.31 0.0 1701.30 1718.30
Silver 32.080 0.010 0.0 31.620 32.330
Platinum 1540.75 -19.55 -1.3 1543.25 1573.24
Palladium 594.39 -7.31 -1.2 597.52 607.50

TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 128,472 174,094 15.59 -0.30
US Silver 34,922 56,876 23.89 -1.85
US Platinum 11,383 9,735 22 0.08
US Palladium 3,524 4,807

(Additional reporting by David Brough in London; Editing by
Dale Hudson)