PRECIOUS-Gold set to post worst day in a month as equities rebound

* SPDR gold holdings fall to near Oct. 9 levels
* Silver hits a low since December 2018 at $14.48/oz
* U.S. housing starts rise, jobless claims fall more than
expected

(Adds comments, details, updates prices)
By Eileen Soreng and Brijesh Patel
May 16 (Reuters) - Gold was headed for its biggest one-day
percentage decline in a month on Thursday, as the dollar gained
and investors opted for riskier assets on the back of robust
U.S. economic data even as the U.S.-China trade concerns linger.
Spot gold XAU= fell 0.8% to $1,285.63 per ounce as of 2:17
p.m. EDT (1817 GMT). Prices were on track for their biggest
percentage decline since April 16.
U.S. gold futures GCcv1 settled down 0.9% at $1,286.20 an
ounce.
There is risk on sentiment in the equity market and as the
U.S. stock market rebounded, that coupled with strength in the
dollar is providing headwinds to gold prices, said Alex Turro,
market strategist at RJO Futures.
U.S. stock indexes extended gains on upbeat earnings as well
as robust economic data that underlined the strength of the
domestic economy. Meanwhile, the dollar index .DXY rose to its
highest level in nearly two weeks against a basket of
currencies. .N USD/
The U.S. housing data showed homebuilding increased more
than expected in April, while unemployment benefits fell more
than expected last week, pointing to sustained labor market
strength that should underpin the economy. However, there are a lot of geopolitical risks in the Middle
East with Iran and the ongoing trade war, which might garner
some flight to safety in the near term, Turro added.
Trump administration's decision to sanction and potentially
cripple Chinese telecoms giant Huawei Technologies Co Ltd
garnered a sharp rebuke on Thursday from Beijing, which warned
that the move could damage trade talks. "A U.S.-China trade theme continues in the world
marketplace: one day the two sides are upbeat on a deal getting
done; the next day their tone is sour. Such will keep the
markets very uncertain on the matter," said Jim Wyckoff, senior
analyst at Kitco, in a note.
"The gold bulls and bears are on a level overall near-term
technical playing field. First resistance is seen at $1,300 and
then at this week's high of $1,304.20."
SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said holdings fell 0.4% to 733.23 tonnes
on Wednesday. Holdings are now close to their lowest levels
since Oct. 9. GOL/ETF
Among other metals, silver XAG= was down 1.8% at $14.53
and ounce, after hitting a low since Dec. 14, 2018 at $14.48 an
ounce.
Platinum XPT= dipped 1.6% to $831.75 per ounce, having hit
a two month low at $826.95 earlier in the session.
Palladium XPD= was down 1% at $1,331.73 per ounce and has
slumped more than 18% since the metal used in catalytic
converters in car exhaust systems scaled a record peak of
$1,620.53 in March.