PRECIOUS-Gold rebounds but logs biggest weekly loss since June

Fri Sep 13, 2013 4:31pm EDT

* Gold posts more than 5 pct weekly loss
    * U.S. retail sales, consumer confidence point to weakness
    * Market turns attention to next week's FOMC
    * Coming up: U.S. New York State manufacturing index

 (Updates market activity)
    By Frank Tang and Clara Denina 
    NEW YORK/LONDON, Sept 13 (Reuters) - Gold rebounded on
Friday on late bargain hunting, but poor technical momentum,
easing tensions with Syria and expectations that the U.S.
Federal Reserve will unwind its monetary stimulus led to the
metal's largest weekly loss since late June.
    After falling as much as 1 percent to hit a five-week low
earlier Friday, bullion ended up 0.3 percent on buying related
to pre-weekend book squaring late in the session, traders said. 
    In late August, gold surged to a three-month high above
$1,430 on concerns Western powers led by the United States would
launch military strikes on Syria. Since then, the metal's price
has lost almost 8 percent.
    On Friday, Russia and the United States agreed to a new push
to negotiate an end to Syria's civil war as they discussed a
plan to destroy President Bashar al-Assad's chemical weapons in
order to avert U.S. air strikes. 
    "As tensions with Syria cool down, the risk premium that had
quickly pushed the gold market sharply higher is now being taken
off very quickly," said Sean McGillivray, head of asset
allocation at Great Pacific Wealth Management. 
    Spot gold hit its lowest point since Aug. 8 at
$1,304.56, and was last up 0.3 percent at $1,324.26 an ounce by
4:09 p.m. EDT (2009 GMT).
    Bullion lost nearly 5 percent this week for its biggest
weekly loss since the week of June 28.
    U.S. gold futures for December settled down $22 at
$1,308.60 an ounce. Despite active trading in the last two
sessions, volume was only 10 percent above its 30-day average,
preliminary Reuters data showed.
    On Thursday, gold fell 3.5 percent after a sudden price
tumble in the futures market shattered investor confidence. The
metal also broke below its 100- and 50-day moving averages in
the previous session. 

    US DATA POINTS TO WEAKNESS
    For the second consecutive day, choppy trading in precious
metals came as outside markets including U.S. equities and the
U.S. currency barely responded to economic indicators.
    U.S. data showed consumer confidence ebbed early this month
and retail sales advanced just slightly in August, the latest
indications of a lack of momentum in the economy. Another report
on Friday showed an energy-led rise in wholesale prices last
month but subdued inflation pressure. 
    Now traders turn their attention to the Federal Open Market
Committee which is expected to release a policy statement at the
end of its two-day meeting next Wednesday.
    Consensus is building among analysts that the FOMC could
announce a plan to begin slashing its $85 billion monthly bond
purchase program.
    Among other precious metals, silver climbed 2.1
percent to $22.20 an ounce. It lost 7 percent this week, its
biggest weekly loss since late June.
    Platinum rose 1.6 percent to $1,450.75 an ounce,
while palladium gained 1.4 percent to $699 an ounce.
 4:09 PM EDT     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold DEC   1308.60 -22.00  -1.7  1304.60 1330.80  163,046
 US Silver DEC  21.720 -0.429  -1.9   21.420  22.265   46,875
 US Plat OCT   1444.50   1.80   0.1  1426.00 1454.30   12,359
 US Pall DEC    699.10   6.30   0.9   687.40  701.75    3,904
                                                               
 Gold          1324.26   4.07   0.3  1305.33 1330.56         
 Silver         22.200  0.460   2.1   21.410  22.220
 Platinum      1450.75  23.05   1.6  1428.00 1451.00
 Palladium      699.00   9.50   1.4   689.25  699.00
                                                               
 TOTAL MARKET              VOLUME          30-D ATM VOLATILITY
                CURRENT   30D AVG  250D AVG   CURRENT     CHG
 US Gold        172,759   155,349   181,053      24.4   -0.08
 US Silver       48,950    67,522    57,894     36.32    2.58
 US Platinum     14,666    10,532    12,288     19.96    0.00
 US Palladium     3,942     6,767     5,848                  
                                                               
 
 (Additional reporting by Lewa Pardomuan in Singapore; Editing
by Jason Neely and James Dalgleish)
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