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PRECIOUS-Gold slips as dollar rebounds, but set for weekly gain

Credit: REUTERS/ALEXANDER MANZYUK

Gold slipped on Friday as the U.S. dollar in which bullion is priced rebounded from two-week lows, but the safe-haven metal was still likely to post its first weekly gain in five on persistent worries over economic growth.

* Gold headed for first weekly rise in five weeks

* U.S. dollar headed for worst week since early February

* Wall Street opens higher (Recasts, adds comment, details and updates prices)

By Ashitha Shivaprasad

May 20 (Reuters) - Gold slipped on Friday as the U.S. dollar in which bullion is priced rebounded from two-week lows, but the safe-haven metal was still likely to post its first weekly gain in five on persistent worries over economic growth.

Spot gold reversed course to fall 0.3% to $1,836.15 per ounce by 1432 GMT, after hitting a one-week high earlier in the session. U.S. gold futures fell 0.4% to $1,833.80.

Bullion, which hit a 3-1/2-month low of $1786.60 on Monday, has gained about 1.4% so far this week.

"Dollar has retreated this week and has helped gold rise. Also, once gold crossed the $1,785 mark, bargain hunters came in and that provided mild support," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

"However today, U.S. equities are recovering and the slight uptick in dollar is pressuring gold." [.N]

The dollar index , up 0.3%, was still headed for its worst week since early February. [USD/]

"Bulls are touting safe-haven demand as being supportive for the precious metals, while bears counter that recent rising bond yields and a still-strong U.S. dollar remain in their camp," said Kitco senior analyst Jim Wycoff in a note.

"Both bulls and bears need some new fundamental news to help drive prices."

The U.S. Federal Reserve's aggressive rate hike stance to fight surging prices has bolstered the U.S. dollar and Treasury yields, at the same time raised concerns about economic growth.

Recession fears have grown recently and because of the volatility in equity markets, there will be more interest in gold, said Xiao Fu, head of commodities markets strategy at Bank of China International.

Silver fell 0.5% to $21.78 per ounce, but was up about 3.3% for the week.

Platinum fell 0.9% to $953.75, while palladium eased 0.8% to $1,991.04. Both are likely to record weekly gains. (Reporting by Ashitha Shivaprasad and Swati Verma in Bengaluru) ((Ashitha.Shivaprasad@thomsonreuters.com;)) Keywords: GLOBAL PRECIOUS/ (UPDATE 6)

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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