* 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 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
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)