PRECIOUS-Gold gains on weaker dollar, rising equities cap upside

* Palladium retreats from record peak, but set for 6th
weekly gain
* Platinum on track for fourth consecutive weekly gain
* Markets await U.S. retail sales data due at 1230 GMT

(Updates prices)
By K. Sathya Narayanan
Sept 13 (Reuters) - Gold prices rose back above the key
$1,500 level on Friday as the U.S. dollar slipped on the back of
a strong euro, though hopes for a thaw in Sino-U.S. trade
tensions supported equity markets, capping bullion's gains.
Spot gold XAU= was up 0.6% to $1,507.96 per ounce as of
1156 GMT, up marginally for the week.
U.S. gold futures GCcv1 were up 0.6% to $1,515.60 per
ounce.
"The main reason is that the dollar is lower. Market focus
is now on the Federal Reserve meeting and retail sales data,
which is due today," ABN Amro analyst Georgette Boele said.
The U.S. dollar .DXY slipped from an over one-week high
scaled in the previous session as the euro surged on rising
German bond yields as investors bet the European Central Bank
was done cutting interest rates. USD/ Investors are now awaiting the U.S. central bank meeting
next week where it is expected to slash its benchmark interest
rate by at least 25 basis points for the second consecutive
time. FEDWATCH
Markets are also keeping a close watch on any economic data
from the United States to gauge the economy's strength ahead of
the monetary policy meeting. The U.S. retail sales report is due
at 1230 GMT on Friday.
Analysts said that fears of a deceleration in global
economic growth and a plethora of negative-yielding government
debt around the world, along with dovish monetary policy outlook
by global central banks will be supporting bullion longer term.
"(Gold) is still in a lateral trading range. We are seeing a
technical rebound from the $1,500 level. The support level of
$1,500 is quite strong and is holding prices up," ActivTrades
chief analyst Carlo Alberto De Casa said.
However, bullion's upside was limited as global equities
climbed to a six-week high on signs of progress in U.S.-China
trade talks. MKTS/GLOB
U.S. President Donald Trump said he preferred a complete
trade deal with China but did not rule out the likelihood of an
interim pact, even as he said an "easy" agreement wouldn't be
possible, ahead of scheduled talks next month.
Elsewhere, palladium XPD= fell 0.7% to $1,606.76 per
ounce, after hitting an all-time high of $1,621.55 on Thursday
as possible labour issues in South African mines stoked supply
concerns in an already tight market. The auto-catalyst metal, however, was up over 4% so far this
week and was on track for a sixth straight weekly gain.
Silver XAG= rose 0.4% to $18.17 per ounce, while platinum
XPT= inched 0.8% higher to $958.68 and was on course to gain
for a fourth week.