* Silver on track for best week in seven
* U.S. retail sales due at 1230 GMT
Oct 15 (Reuters) - Gold prices fell on Friday as U.S. bond
yields rebounded, though a subdued dollar helped put the
precious metal on track for its best week since late August.
Spot gold fell 0.8% to $1,780.76 per ounce by 1101
GMT. U.S. gold futures slipped 0.9% to $1,782.60.
Dimming gold's appeal by raising its opportunity cost, U.S.
benchmark 10-year Treasury yields recovered from a more than
one-week low hit on Thursday.
"Expectations are growing that the Fed and other central
banks are going to tighten their monetary policy, which should
keep yields supported, and when yields rise gold tends to
struggle," said Fawad Razaqzada, analyst with ThinkMarkets.
"Investors are, however, likely expecting only a moderate
tightening from major central banks and that shouldn't cause too
much of a problem for gold as investors hedge against elevated
While most Fed policymakers agree the central bank could
start reducing its monthly bond purchases as soon as next month,
they are sharply divided over inflation and what they should do
Gold is often considered an inflation hedge, though reduced
stimulus and interest rate hikes push government bond yields up,
raising the opportunity cost of holding non-yielding bullion.
Investors now await U.S. retail sales data due at 1230 GMT.
"While gold could face resistance at the 100 and 200-day
moving averages of about $1,798 and $1,795 respectively, gold
could overcome this threshold if U.S. economic data especially
retail sales turn out to be weaker and the dollar depreciates
in response," Commerzbank analysts wrote in a note.
Gold remains on course for a 1.4% weekly gain as the dollar
index weakened, lowering gold's cost for buyers holding
Spot silver fell 1.3% to $23.23 an ounce but was
headed for its biggest weekly gain in seven.
Platinum => dropped 0.5% to $1,050.24, while
palladium rose 0.4% to $2,136.55.
(Reporting by Nakul Iyer in Bengaluru; editing by Jason Neely,