Jan 17 (Reuters) - Gold edged lower on Friday, on track to post its worst week in two months, as positive U.S. economic data and optimism over an interim U.S.-China trade deal boosted appetite for riskier assets and dented some of bullion's allure.

FUNDAMENTALS

* Spot gold edged 0.1% lower to $1,550.96 per ounce by 0118 GMT. For the week, prices have declined 0.7% so far, it's lowest since the week ended Nov. 8. U.S. gold futures

was flat at $1,550.80.

* Asian equities rose on the back of global stocks and Wall Street scaling new records, on encouraging U.S. economic data and strong corporate earnings.

* Data from the United States showed retail sales rose for a third straight month in December and the number of Americans filing claims for unemployment benefits dropped for a fifth straight week last week.

* A gauge of manufacturing activity in the U.S. Mid-Atlantic region rebounded in January to its highest in eight months.

* Investors are now awaiting Chinese economic data, where China is expected to post that economic growth slowed to its weakest in nearly three decades in 2019 amid a bruising trade war with the United States.

* Meanwhile, from Huawei to the South China Sea, deep political rifts between Beijing and Washington are set to persist, despite a trade relations breakthrough, as the U.S. pushes back against an increasingly powerful and assertive China.

* Holdings of the world's largest gold-backed exchange-traded fund SPDR Gold Trust rose 0.13% to 879.49 tonnes on Thursday.

* Canadian miner Barrick Gold Corp's fourth-quarter gold production estimates came above analysts' expectations on Thursday, as its Nevada Gold Mines joint venture with Newmont Corp yielded more of the precious metal.

* Palladium advanced 0.4% to $2,321.67 an ounce after hitting a record peak of $2,395.13 on Thursday and was set for its highest weekly gain since January 2017.

* Silver fell 0.2% to $17.91 per ounce, while platinum rose 0.3% to $1,007.52, after hitting its highest since February 2017 at $1,041.05 in the previous session. DATA/EVENTS (GMT) 0200 China Urban Investment (YTD) YY Dec 0200 China Industrial Output YY Dec 0200 China Retail Sales YY Dec 0200 China GDP YY Dec 0930 UK Retail Sales MM, YY Dec 0930 UK Retail Sales Ex-Fuel MM Dec 1000 EU HICP Final MM, YY Dec 1330 US Housing Starts Number Dec 1415 US Industrial Production Dec 1300 US U Mich Sentiment Prelim Jan

(Reporting by Asha Sistla in Bengaluru; Editing by Shailesh Kuber)

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