PRECIOUS-Gold faces third weekly fall on upbeat shares, yields

* Palladium retreats from record peak, but set for 6th
weekly gain
* Platinum on track for fourth straight weekly gain
* Solid U.S. retail sales data boosts equities, yields

(Updates prices)
Sept 13 (Reuters) - Gold prices eased on Friday, heading for
a third straight weekly fall, as positive U.S. retail sales data
and hopes for a thaw in China-U.S. trade tensions lifted
equities and yields to multi-week highs.
Spot gold XAU= fell 0.5% to $1,491.41 per ounce by 1:35
p.m. EDT (1735 GMT), and has fallen about 1% for the week so
far.
U.S. gold futures GCcv1 settled down nearly $8, or 0.5%,
to $1,499.50 per ounce.
"With better-than-expected data along with a rise in global
equity markets, we are seeing gold fall off its earlier highs.
Optimism about trade has led to a bounce in global equities and
lesser need for safe-haven commodities such as gold," said David
Meger, director of metals trading at High Ridge Futures.
"Underlying theme of global central bank easing continues to
be a supportive factor for gold on the one side and you have
some pressure coming from global equities and better prospects
of trade."
U.S. Treasury yields rose across the board after data showed
U.S. retail sales rose in August, suggesting the risk of
recession in the world's largest economy continues to diminish.
US/
Global shares also climbed to a six-week high on further
signs of progress in U.S.-China trade talks and added stimulus
from the European Central Bank. MKTS/GLOB
Washington and Beijing have both made conciliatory gestures
in recent days, further boosting the risk appetite in markets.
Investors are now awaiting the U.S. central bank meeting
next week, when it is expected to cut its benchmark interest
rate by at least 25 basis points for the second consecutive
time. FEDWATCH
Analysts said that dovish monetary policy adopted by global
central banks along with concerns of a glut in negative-yielding
government debt globally will continue to support bullion in the
longer term.
"Gold is going to remain around these levels or drift
higher. Gold is actually paying more than any other 30-year
bond, and every small move actually pays more than bonds," said
an analyst based in New York.
Elsewhere, palladium XPD= fell 0.6% to $1,608.77 per
ounce, after hitting an all-time high of $1,621.55 on Thursday.
The rally in prices of the auto-catalyst metal was due to
alleviated supply concerns arising from possible labor issues in
South African mines. Palladium was up over 4% so far this week and on track for a
sixth straight weekly gain.
Silver XAG= slipped 3.1% to $17.54 per ounce, while
platinum XPT= edged 0.1% lower to $950.10 and yet was on
course to a fourth straight weekly gain.