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PRECIOUS-Gold on course for worst week since November as dollar rises

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* Gold down 1.4 percent so far this week

* SPDR gold holdings fall to lowest since December

* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

By Swati Verma

March 1 (Reuters) - Gold slipped to two-week lows and wasset for its biggest weekly fall in nearly four months on Friday,pressured by a reviving dollar and rising stocks.

Spot gold XAU= is down about 1.4 percent so far this week,which could be its biggest weekly decline since the week endingNovember 9. It was down 0.3 percent at $1,309.13 an ounce at1103 GMT, having touched its lowest since Feb. 14 at $1,305.53.

U.S. gold futures GCv1 shed 0.4 percent to $1,310.40.

"The news on jobs and Gross Domestic Product (GDP) was morefavourable for the dollar, which has been gaining value. Becauseof that we are continuing to see some long liquidations," AfshinNabavi, senior vice president at MKS SA, said.

"We have breached $1,315 and $1,310, which are veryimportant support levels. Won't be surprised even if we see atest of $1,300 later today."

The dollar .DXY , which gained impetus from better thanexpected fourth quarter U.S. GDP data, hit a 10-week highagainst the yen. USD/urn:newsml:reuters.com:*:nUSNSDEFQKUS/

"Rallies in the dollar are taking their toll on gold muchmore than they were a few weeks ago which is a clear sign thatsentiment towards the yellow metal has shifted," OANDA seniormarket analyst Craig Erlam wrote in a note.

"The next test below is $1,300, a break of which could bethe catalyst for another bearish move, at which point$1,275-1,280 becomes notable support."

Gold rose to a 10-month peak of $1,346.73 last week, helpedby expectations that the U.S. central bank will pause interestrate increases, but has lost ground since as the dollar regainedmomentum. MKTS/GLOB

"After it (gold) failed last week to rise above $1,350, thegold price is nearing the psychologically important $1,300 pertroy ounce mark again today," Commerzbank analysts said.

"Better sentiment on the stock markets and a reluctance bythe physical gold investors are weighing on its price."

Holdings of the SPDR Gold TrustGLD , the world's largestgold-backed exchange-traded fund, fell 0.52 percent to 784.22tonnes on Thursday, falling to their lowest level since lateDecember. GOL/ETF

Among other precious metals, spot palladium XPD= fell 0.6percent to $1,534.31 per ounce, retreating from its all-timepeak of $1,565.09 scaled earlier in the week. The metal is oncourse for a fourth consecutive week of gains.

Spot silver XAG= fell 0.3 percent to $15.55 per ounce,having earlier hit $15.46, a level last seen on Feb. 14.

Platinum XPT= fell 0.4 percent to $866.37. The metal is ontrack for a third straight weekly gain. (Reporting by Swati Verma, Sethuraman N R and Arijit Bose inBengaluru; Editing by Alexander Smith) ((Swati.Verma@thomsonreuters.com; within U.S. +1 651 848 5832,outside U.S. +91 80 6749 6356/1298 ; Reuters Messaging:swati.verma.thomsonreuters.com@reuters.net))


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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