PRECIOUS-Gold back above $1,500 on growth woes, Middle East tensions post-Fed

* Dollar slips, gives up overnight gains
* U.S., Gulf allies discuss possible response to Saudi
attack
* Bank of Japan leaves interest rates unchanged

(Updates prices)
By Brijesh Patel
Sept 19 (Reuters) - Gold rose back above $1,500 an ounce on
Thursday as the focus returned to global growth risks and Middle
East tensions, helping bullion recover after the U.S. Federal
Reserve cut interest rates but gave mixed signals on any future
easing.
Spot gold XAU= was up 0.6% at $1,502.92 per ounce at 1322
GMT, after falling on Wednesday to $1,484.16, a one-week low.
U.S. gold futures GCcv1 dipped 0.3% to $1,509.70 an ounce.
"We've repeatedly seen any dips below $1,500 or towards
$1,490 meet buying interest as market participants see lower
prices as a buying opportunity," Commerzbank analyst Carsten
Fritsch said.
"They still expect gold to trade higher in the medium term,
because of a favourable environment of lower, negative interest
rates, persistent political and economic risk and growing
tensions in the Middle East."
The Fed cut rates for the second time this year by a quarter
percentage point as policymakers battle a slowdown in global
growth, but the U.S. central bank signalled further cuts were
unlikely as the labour market remained strong. "The market is just digesting a hawkish rate cut from the
FOMC (Federal Open Market Committee). The FOMC seems very split
in terms of how aggressive they need to be cutting rates further
and that has taken (off) some support from gold," Saxo Bank
commodity strategist Ole Hansen said.
"The short term could be a little bit challenging for gold.
The market is stuck in the $1,512-$1,480 range and with a
potential lack of bullish news, there is a risk we could see a
deeper correction, but the overall bullish outlook for gold is
still intact."
Earlier in the day, the Bank of Japan kept monetary policy
steady as expected. However, central banks around the world face increasing
pressure to dole out monetary support as the U.S.-China trade
war hurts global growth.
Lower interest rates decrease the opportunity cost of
holding non-yielding bullion and weigh on the dollar.
Meanwhile, the dollar .DXY slipped, giving up overnight
gains. USD
"The fact that gold is not trading lower after a less dovish
Fed is a testament to gold's resilient demand as an alternative
asset," AxiTrader strategist Stephen Innes said in a note.
On the geopolitical front, the United States was discussing
with Saudi Arabia and other Gulf allies possible responses to an
attack on Saudi oil facilities. Silver XAG= gained 1% to $17.91 an ounce, while platinum
XPT= rose 0.8% to $938.06. Palladium XPD= jumped 1.1% to
$1,608.36 an ounce.