* Gold poised for second consecutive weekly decline
* Yuan touches two-week high vs dollar
* Platinum, palladium set for weekly gains

By Swati Verma
       Sept 15 (Reuters) - Gold prices gained on Friday as the
dollar eased against the yuan after promising China economic
data boosted recovery hopes in the world's top bullion consumer,
although the possibility of further U.S. interest rate hikes
kept investors on edge.
    Spot gold        was up 0.3% at $1,915.09 per ounce by 0320
GMT. Bullion was still on track for a small weekly decline after
dropping to near $1,900 level, its lowest since Aug. 23, on
Thursday. U.S. gold futures         were up 0.2% to $1,936.70. 
    The yuan hit two-week highs against the dollar after data
showed China factory output and retail sales in August beat
forecasts in boost to recovery prospects. A softer dollar makes
greenback-priced bullion more attractive for overseas buyers. 
      
    Data on Thursday showed U.S. producer prices increased by
the most in more than a year last month while retail sales also
beat expectations, boosted by a surge in gasoline prices. 
    This comes after U.S. consumer prices in August increased by
the most in 14 months, keeping bets alive for further rate hikes
by the Federal Reserve after a likely pause next week.
        "The outlook for rates to be kept high for longer has
been keeping non-yielding gold prices under pressure," said Yeap
Jun Rong, a market strategist at IG. 
    "Given the still-resilient economic conditions in the U.S.,
it does not seem to warrant the need for rate cuts anytime soon,
with the timeline for cuts constantly pushed back into mid next
year."
    The European Central Bank also raised its key interest rate
to a record high of 4% on Thursday, but signalled that the hike
was likely to be its last.
    Higher rates to curb inflation tend to lower demand for
bullion, which yields no interest.
    Spot silver        jumped 1% to $22.86 per ounce. Platinum
       gained 0.6% to $911.92 and palladium        added 0.3% to
$1,254.42, both looking poised for weekly gains.

    

 (Reporting by Swati Verma in Bengaluru; Editing by Sherry
Jacob-Phillips)