PRECIOUS-Gold cuts losses after reports say U.S. mulling delisting China stocks

(Recasts, adds comments, details, updates prices)
* Gold down nearly 1.2% over the week
* Palladium set for eighth straight weekly gain
* Platinum poised for worst week in over one-month

By Sumita Layek and K. Sathya Narayanan
Sept 27 (Reuters) - Gold pared some losses on Friday, after
falling more than 1%, as investors opted for the safety of the
metal following reports the United States is considering
delisting Chinese companies from U.S. stock exchanges.
Spot gold XAU= was down 0.5% at $1,498.07 an ounce as of
02:33 p.m. EDT (1833 GMT) after touching its lowest since Sept.
18 at $1,486.60 earlier in the session. The metal was still down
about 1.2% for the week.
U.S. gold futures GCcv1 settled down 0.6% to $1,506.40 an
ounce.
U.S. President Donald Trump's move to delist Chinese
companies from U.S. stock exchanges would be a part of a broader
effort to limit U.S. investments into China, a source briefed on
the matter said.
"The reports probably brought a little bit of short covering
and put the U.S.-China trade war back on the table," said Jim
Wyckoff, senior analyst with Kitco Metals.
Earlier in the session, gold prices had slipped as much as
1.3% as the dollar rose to a three-week peak amid doubts whether
the U.S. Federal Reserve will cut interest rates again in
October. USD/
"Central bank easing is being called into question as many
Fed officials are saying that maybe we don't need as much
ongoing stimulus in the market," said David Meger, director of
metals trading at High Ridge Futures.
On Thursday, Fed Vice Chair Richard Clarida said U.S.
inflation expectations are currently in line with the central
bank's 2% goal, an indication that he does not see a pressing
need for new rate cuts to boost inflation. "The U.S. durable goods number also came better than
expected and people are getting out of gold here just because
that data does not support another rate cut," said Bob
Haberkorn, senior market strategist at RJO Futures.
Data earlier on Friday showed U.S. durable goods orders rose
0.2% in August versus an expectation of -1%. "While global central bank easing, (the U.S.-China) trade
war, economic growth concerns, geopolitical tensions in Mideast
and other places, alternative investment demand due to
recessionary fears will remain in place, at this moment they
look wobbly and are allowing this pullback in the gold market,"
High Ridge Futures' Meger said.
Among other precious metals, silver XAG= fell 1.5% to
$17.54 an ounce.
Platinum XPT= slipped 0.1% to $929.02 and was on track for
its worst week in over a month.
Palladium XPD= was up 0.9% to $1,682.56 an ounce. The
auto-catalyst metal, which is in short supply, was up nearly
2.5% for the week and on track for a eighth straight weekly
gain.