PRECIOUS-Gold eases, sets for weekly loss on economic hopes

* Better U.S. equities performance dents safe-haven appeal
    * SPDR gold ETF set for biggest weekly outflow in 18 months
    * Sentiment remains weak on fears over Fed stimulus end

 (New update throughout, changes byline, dateline, previously
LONDON)
    By Frank Tang
    NEW YORK, Feb 22 (Reuters) - Gold edged down on Friday, on
track for a second consecutive weekly loss, as signs of a
steadily improving U.S. economic outlook and indications the
Federal Reserve may end its stimulus program prompted investors
to buy riskier assets such as equities.
    With a lack of key U.S. economic data on Friday, bullion
investors lightened positions ahead of the weekend as they
digested the minutes from the Fed's Open Market Committee (FOMC)
meeting in January which suggested stimulus measures may end
earlier than thought. 
    Gains in U.S. equities also made gold, a traditional safe
haven, less attractive. U.S. benchmark index S&P 500 was
up 6 percent year to date and managed to hold above 1,500 points
despite weakness this week. 
    "The waning down of the safe-haven play has definitely put
pressure on gold, as we have seen the risk-on trade into
equities for well over a month now," said Matthew Schilling,
senior commodities trader of futures brokerage RJ O'Brien.
    Spot gold was down 0.2 percent to $1,573.01 an ounce
by 11:36 a.m. EST (1636 GMT), on course for a weekly decline of
over 2 percent.
    U.S. gold futures for April delivery were down $5.70
at $1,572.90, with trading volume on track to finish sharply
below its 250-day average, preliminary Reuters data showed. 
    Confidence in gold was still fragile after the metal fell to
a seven-month low of $1,554.49 Thursday on the FOMC minutes and
rumors of forced liquidation by a troubled commodity fund
earlier in the week. 
    Investors continued to bail out of SPDR Gold Trust 
this week. The world's largest gold-backed exchange-traded fund
is on track for its biggest weekly outflow since August 2011.
 
    Among other precious metals, silver was down 0.7
percent to $28.45 an ounce. 
    Platinum group metals were slightly lower but sharply off
Thursday's lows.
    Platinum fell 0.5 percent to $1,602 an ounce, after
prices fell to a five-week low of $1,593.45 in the previous
session. Palladium eased 0.1 percent at $727.72 an ounce,
having fallen to a one-month low of $707.22 on Thursday.
    
 Prices at 11:36 a.m. EST (1635 GMT)                           
 
                               LAST      NET    PCT     YTD
                                         CHG    CHG     CHG
 US gold                    1572.90    -5.70  -0.4%   -6.1%
 US silver                   28.440   -0.259  -0.9%   -5.9%
 US platinum                1605.80   -14.20  -0.9%    4.4%
 US palladium                730.15    -3.45  -0.5%    3.8%
 
 Gold                       1573.01    -2.65  -0.2%   -6.1%
 Silver                       28.45    -0.19  -0.7%   -6.1%
 Platinum                   1602.00    -8.74  -0.5%    4.2%
 Palladium                   727.72    -0.75  -0.1%    3.7%
 
 Gold Fix                   1576.50    -3.50  -0.2%   -5.3%
 Silver Fix                   28.79     7.00   0.2%   -3.9%
 Platinum Fix               1611.00     7.00   0.4%    5.8%
 Palladium Fix               732.00     6.00   0.8%    4.7%
    

 (Additional reporting by Clara Denina and Jan Harvey; editing
by Jim Marshall)