* Palladium retreats from record peak, but set for 6thweekly 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 ofa strong euro, though hopes for a thaw in Sino-U.S. tradetensions supported equity markets, capping bullion's gains.
Spot gold was up 0.6% to $1,507.96 per ounce as of1156 GMT, up marginally for the week.
U.S. gold futures were up 0.6% to $1,515.60 perounce.
"The main reason is that the dollar is lower. Market focusis now on the Federal Reserve meeting and retail sales data,which is due today," ABN Amro analyst Georgette Boele said.
The U.S. dollar slipped from an over one-week highscaled in the previous session as the euro surged on risingGerman bond yields as investors bet the European Central Bankwas done cutting interest rates.
Investors are now awaiting the U.S. central bank meetingnext week where it is expected to slash its benchmark interestrate by at least 25 basis points for the second consecutivetime.
Markets are also keeping a close watch on any economic datafrom the United States to gauge the economy's strength ahead ofthe monetary policy meeting. The U.S. retail sales report is dueat 1230 GMT on Friday.
Analysts said that fears of a deceleration in globaleconomic growth and a plethora of negative-yielding governmentdebt around the world, along with dovish monetary policy outlookby global central banks will be supporting bullion longer term.
"(Gold) is still in a lateral trading range. We are seeing atechnical rebound from the $1,500 level. The support level of$1,500 is quite strong and is holding prices up," ActivTradeschief analyst Carlo Alberto De Casa said.
However, bullion's upside was limited as global equitiesclimbed to a six-week high on signs of progress in U.S.-Chinatrade talks.
U.S. President Donald Trump said he preferred a completetrade deal with China but did not rule out the likelihood of aninterim pact, even as he said an "easy" agreement wouldn't bepossible, ahead of scheduled talks next month.
Elsewhere, palladium fell 0.7% to $1,606.76 perounce, after hitting an all-time high of $1,621.55 on Thursdayas possible labour issues in South African mines stoked supplyconcerns in an already tight market.
The auto-catalyst metal, however, was up over 4% so far thisweek and was on track for a sixth straight weekly gain.
Silver rose 0.4% to $18.17 per ounce, while platinuminched 0.8% higher to $958.68 and was on course to gainfor a fourth week.(Reporting by K. Sathya Narayanan in Bengaluru; editing byEmelia Sithole-Matarise and Jason Neely)