* Gold rises on weaker-than-expected U.S. retail sales data
* Trading rangebound ahead of G20 summit news
* Eurozone in recession in Q3
By Julie Crust
LONDON, Nov 14 (Reuters) - Gold rebounded on Friday after worse-than-expected U.S. retail sales figures, but trading was rangebound ahead of the Group of 20 summit in Washington.
Spot gold XAU= rose to $750.80 an ounce, reversing an earlier decline, before trading at $744.15/746.50 an ounce at 1527 GMT, from $734.30 an ounce in New York late on Thursday.
U.S. gold futures for December delivery GCZ8 rallied $39.80 to $744.80 on the COMEX division of the New York Mercantile Exchange.
“Gold jumped after the start of COMEX trading,” said Tom Kendall, precious metals strategist at Mitsubishi Corp. “It was very quiet ahead of the U.S. rally and people are waiting to see if anything positive will come out of the G20 meeting.”
New York gold futures rose as disappointing U.S. retail sales data triggered heavy buy-stops by bolstering gold’s appeal as an alternative investment.
“After the dip yesterday and late U.S. trading we are back where we started the week really,” said Kendall.
U.S. retail sales posted a bigger-than-expected record decline in October, government data showed, as shoppers reined in spending with home prices falling, although plunging gasoline prices also reduced outlays by consumers. [ID:nN14423234]
Gold rebounded from earlier lows, which were a result of lower oil prices and a stronger dollar, but trading is rangebound ahead of the weekend summit of industrialised and emerging nations on the global financial crisis.
However the dollar eased off from gains against the euro following an unexpected rise in U.S. consumer confidence.
The Reuters/University of Michigan Surveys of Consumers said its index of confidence edged up to 57.9 in November from 57.6 in October. The index came in above economists’ expectations of 56.0, according to the median of forecasts in a Reuters poll. [ID:nN14429998]
The dollar has been rising since August when markets realised the financial crisis and economic slowdown would not be confined to the United States.
The euro zone economy fell into its first technical recession in the third quarter, boosting expectations that the European Central Bank would cut interest rates in December. [ID:nLE63095]
However, dealers said they expected steady physical buying from India, the world’s main gold consumer, would also aid prices during the traditional wedding season, which runs until early 2009. [ID:nBOM114507]
Platinum XPT= traded at $835.00/855.00 from 821.50 an ounce.
Prices of the metal used to make autocatalysts have plunged about 64 percent since a record high of $2,290 hit in March.
Johnson Matthey JMAT.L, the world's top platinum refiner and fabricator, will release its keenly awaited interim review on Tuesday.
“Johnson Matthey has the potential to influence the price of platinum and palladium in the sort term,” said Kendall.