PRECIOUS-Gold rebounds as slow recovery fears resurface after Fed minutes

* Equities weak across Asia in wake of Fed minutes
* Dollar, U.S. Treasury yields advance
* Gold dropped more than 3.5% on Wednesday
* Interactive graphic tracking global spread of coronavirus:
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(Updates prices)
By Brijesh Patel
Aug 20 (Reuters) - Gold prices rose on Thursday following a
sharp fall in the previous session as the U.S. Federal Reserve's
cautious view on a recovery from the coronavirus-induced
economic slump drove investors away from riskier assets.
Spot gold XAU= was up 0.6% at $1,941.24 per ounce by 0700
GMT, after declining more than 3.5% to a near one-week low on
Wednesday.
U.S. gold futures GCcv1 fell 1.1% to $1,948.10.
"Gold is stable after it got hammered overnight. The main
fundamentals behind gold have not changed," said Edward Meir, an
analyst at ED&F Man Capital Markets.
"Stimulus is still coming in and it's very pre-mature to say
we're recovering globally and should see higher rates and
stronger dollar; we are many months away from that."
The Fed on Wednesday warned the economic downturn triggered
by the COVID-19 pandemic faces a highly uncertain path and
reiterated the need for additional fiscal stimulus. The dovish remarks from the Fed on the U.S. economy
triggered a retreat in U.S. stocks and across Asian markets.
MKTS/GLOB
Central banks, including the Fed, have rolled out massive
stimulus measures and cut interest rates near zero to combat the
economic toll from the virus outbreak, helping gold rise more
than 28% so far this year as it is considered a hedge against
inflation and currency debasement.
Keeping a check on gold's advance, the dollar index .DXY
rebounded and U.S. Treasury yields rose after the Fed minutes
showed policymakers expressed little support to implement yield
curve control to keep cost of borrowing low. US/ USD/
"Gold remains sensitive to movements in the U.S. dollar and
U.S. monetary policy expectations. The market proved quite
disappointed by last night's Federal Open Market Committee
minutes," said IG Markets analyst Kyle Rodda.
Elsewhere, silver XAG= rose 1.1% to $27 per ounce,
platinum XPT= climbed 0.3% to $934.89, and palladium XPD=
gained 0.7% to $2,171.77.