SINGAPORE, April 13 (Reuters) - Gold edged lower on Friday
after weaker-than-expected first-quarter growth data from China
prompted a modest rise in the dollar, but the losses were capped
as the slower growth fuelled the prospects for further monetary
easing.	
    The world's second-largest economy experienced a fifth
consecutive quarter of slowing growth in the first three months
of 2012, with the gross domestic product reading at a
lower-than-expected 8.1 percent. 	
    The dollar index inched up 0.2 percent at the expense
of commodity currencies that were disappointed at the China GDP
data, putting some pressure on dollar-priced commodities
including gold.	
    "The slowdown in China's economy dampened commodities as
well as commodity currencies such as the Australian dollar,"
said Ronald Leung, a dealer at Lee Cheong Gold Dealers in Hong
Kong.	
    The data release coincided with a pause after gold's
1-percent rally in the previous session, as disappointing U.S.
job market data fuelled speculation of more monetary stimulus
and Federal Reserve officials said the central bank was ready to
act if the economy deteriorated.  	
    Spot gold fell to an intra-day low of $1,671.44 after
the data release, but pared some losses to $1,674.19 by 0355
GMT. Prices were on course for a weekly rise of more than 2
percent, the biggest one-week gains since late February.	
    U.S. gold lost 0.3 percent to $1,675.50.	
    Technical analysis suggested spot gold might face resistance
at $1,680 an ounce, said Reuters market analyst Wang Tao.
 	
    	
    Dominic Schnider, head of commodity research at UBS Wealth
Management in Singapore, said though China's lower-than-expected
GDP data could lead to expectations of more easing from Beijing,
gold demand growth may fall short of the dazzling pace in the
past couple of years and weigh on gold prices.	
    "We are still looking at a break of the uptrend in the
second quarter and prices to fall towards $1,520 as a result,"
he said, adding the stable holdings in physically backed
exchange-traded gold funds indicated sluggish growth in gold
investment demand. 	
    The amount of gold held by the major physically backed
exchange-traded funds edged higher on the day to nearly 70.295
million ounces, near its all-time high of 70.899 million ounces.
 	
    	
    CME CUTS MARGINS FOR SILVER, PALLADIUM	
    The CME Group said it will cut the margins for COMEX silver
futures by 12.5 percent, and 9.5 percent for NYMEX palladium
futures, from the close of business on April 16. 	
    This will be the second time the CME will cut silver margins
since February, is an attempt to boost trading interest.	
    COMEX silver fell 0.8 percent to $32.27, reversing a
3-percent rise in the previous session.	
 	
      Precious metals prices 0355 GMT
  Metal             Last    Change  Pct chg  YTD pct chg    Volume
  Spot Gold        1674.19   -0.79   -0.05      7.06
  Spot Silver        32.26   -0.06   -0.19     16.50
  Spot Platinum    1599.44    1.39   +0.09     14.82
  Spot Palladium    648.45   -0.30   -0.05     -0.62
  COMEX GOLD JUN2  1675.50   -5.10   -0.30      6.94         6555
  COMEX SILVER MAY2  32.27   -0.26   -0.80     15.58         1756
  Euro/Dollar       1.3167
  Dollar/Yen         81.03

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