(Updates prices)
* Palladium on track for worst week since mid-July
* Silver set for biggest daily decline in about two weeksBy Karthika Suresh NamboothiriNov 23 (Reuters) - Gold fell on Friday as the dollarregained momentum and an improvement in risk sentiment liftedstock markets in Europe.Spot gold fell 0.4 percent to $1,221.71 per ounce at1317 GMT, while U.S. gold futures for December deliverywere down 0.45 percent to $1,222.40 per ounce.
"It's really the dollar's move ... If gold breaks below$1,220, prices can quickly go to $1,200," Dawei Hou, preciousmetals trader at MKS SA, said.Gold prices have traded within a range of $1,230.06 to$1,217.45 for the week thus far, their narrowest weekly rangesince August, partly due to the U.S. Thanksgiving holiday.A weaker euro, on signs that economic growth across the eurozone could be slowing, helped the dollar , while Europeanstocks opened higher following a volatile week. Euro zone business growth was much weaker than expected thismonth as exports fell sharply, hurt by a slowing global economyand a trade war with the United States. Gold market participants are now focused on the G20 summitin Argentina at the end of the month, where leaders from theUnited States and China are expected to hold talks against abackdrop of ongoing trade tensions.
"If there is nothing in terms of an agreement at the
summit, there will be pressure on stocks. If there is animprovement, gold will go lower as people come back to stocks.People are now looking at the dollar as a safe haven," Hou said.On the technical front, gold has been trading above its50-day and 100-day moving averages and that is keeping itsupported for the moment at the lower end, a Hong Kong-basedtrader said.Among other precious metals, spot silver fell 1.8percent to $14.22 per ounce and platinum slipped0.47percent, to $839.74 per ounce.Silver has mostly been following gold but its moves tend tobe more pronounced, said ABN AMRO analyst Georgette Boele."Investors have been disappointed with silver, so they tryto see if it breaks in the upside and every time it doesn't,they quickly sell it again."
Palladium fell 0.91 percent to $1,142.50 per ounce.The metal was headed for its biggest weekly percentage declinesince the week of July 20, down about 3 percent so far anddrifting off a record high of $1,185.40 hit on Nov. 16.
(Reporting by Karthika Suresh Namboothiri and Swati Verma inBengaluruEditing by Susan Fenton and Alexander Smith)