PRECIOUS-Gold falls on renewed Fed tapering worries

* Bernanke's stimulus unwind timelime intact- Fed's Dudley * Buyers stay on sidelines on uncertain tapering timeline * SPDR Gold Shares holdings down 0.2 pct Friday * Coming up: S&P home price index, consumer confidence Tues (Adds trader comment, second byline, dateline, updates market activity) By Frank Tang and Jan Harvey NEW YORK/LONDON, Sept 23 (Reuters) - Gold edged down on Monday on renewed worries that the U.S. Federal Reserve will begin cutting its bond-buying purchases as early as next month. Federal Reserve Bank of New York President William Dudley said the timeline that Fed chief Ben Bernanke articulated in June for scaling back the central bank's stimulus measures is "still very much intact," as long as the economy keeps improving. Bullion investors were already on edge after St Louis Federal Reserve President James Bullard on Friday said the Fed might move during its October policy meeting to reduce stimulus spending, sending gold 3 percent lower. An uncertain timeline for the Fed to unwind its monetary stimulus on signs of disappointing growth in the housing and job markets have led to increased volatility in the gold market. "Gold is going to see more downward pressure as continued slow U.S. growth should allow the Fed to slowly ease out its position on stimulus," said head precious metals dealer at commodities brokerage Alliance Financial LLC. Spot gold was down 0.2 percent at $1,322.41 an ounce by 3:22 p.m. EDT (1922 GMT). U.S. gold futures for December delivery settled down $5.50 an ounce at $1,327, with trading volume at 20 percent below its 30-day average, preliminary Reuters data showed. Gold prices have fallen 21 percent this year, driven largely by Fed hints in May that it could begin to rein in its $85 billion monthly bond-buying stimulus before the end of 2013. "After last week's move a lot of people are confused on how the market is going and are trying to avoid big positioning ahead of next week's non-farm payrolls," MKS SA head of trading Afshin Nabavi said. Prices have fallen more than 20 percent this year, driven largely by Fed hints that it may begin to rein in its $85 billion monthly bond-buying program before the end of 2013. Uncertainty over the timing of the move has led to choppy trading. Interest in gold-backed exchange traded funds remained relatively soft, with holdings of the world's largest, SPDR Gold Shares, easing 0.2 percent to 910.19 tonnes as of Friday. That has brought its total outflow for the year to 440 tonnes. Among other precious metals, silver was down 0.5 percent to $21.68 an ounce. Platinum fell 0.7 percent to $1,417.74 an ounce and palladium eased 0.5 percent to $710.97 an ounce. 3:22 PM EDT LAST/ NET PCT LOW HIGH CURRENT SETTLE CHNG CHNG VOL US Gold DEC 1327.00 -5.50 -0.4 1313.40 1332.00 126,671 US Silver DEC 21.857 -0.070 -0.3 21.300 21.970 42,181 US Plat OCT 1425.90 -6.70 -0.5 1420.00 1437.00 13,143 US Pall DEC 717.95 -4.00 -0.6 707.65 722.85 3,307 Gold 1322.41 -2.58 -0.2 1314.63 1331.50 Silver 21.680 -0.110 -0.5 21.420 21.920 Platinum 1417.74 -9.66 -0.7 1425.25 1433.99 Palladium 710.97 -3.23 -0.5 710.02 719.72 TOTAL MARKET VOLUME 30-D ATM VOLATILITY CURRENT 30D AVG 250D AVG CURRENT CHG US Gold 136,758 161,668 180,237 22.8 -4.78 US Silver 43,955 68,045 57,843 33.38 -0.23 US Platinum 20,934 11,707 12,410 20.15 -0.49 US Palladium 3,391 6,824 5,886 (Reporting by Frank Tang and Jan Harvey; Editing by Theodore d'Afflisio)

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