PRECIOUS-Gold sheds 1% as risk appetite recovers

* Investors await Fed symposium later this week
* Speculators cut net longs in COMEX gold
* Silver falls 1% to trade below $17

(Updates prices)
By Sumita Layek
Aug 19 (Reuters) - Gold prices fell more than 1% on Monday
as concerns eased that major economies could tip into recession,
boosting investors' affinity for risk and detracting from
bullion's safe-haven allure.
Spot gold XAU= was down 1% at $1,498.90 per ounce as of
1:47 p.m. EDT (1747 GMT). U.S. gold futures GCcv1 settled down
0.8% at $1,511.60.
"There has been some pullback in terms of the concerns over
the risk of a recession. Perhaps the market's reaction to events
in the past week have been too much, so there has been some
positive retracement of equity markets and downward pressure on
gold," said Jeff Klearman, portfolio manager at GraniteShares.
However, "fundamentally things have not really altered at
this point; the underlying factors still support gold, which are
accommodative central banks around the world, fears of slower
global growth and U.S.-China trade tensions."
Benchmark U.S. Treasury yields rose on Monday, easing
concerns of a recession, after the U.S. yield curve between two-
and 10-year bonds inverted for the first time since 2007 on
Wednesday, flashing warning signals for the economy. US/
Wall Street rose after China's plans for interest rate
reform reinforced hopes that major economies would act to
counter the impact of escalating global trade tensions.
MKTS/GLOB .N
Over the weekend, U.S. President Donald Trump and top White
House officials dismissed concerns that economic growth may be
faltering, saying they saw little risk of recession. Trump also
said he was "not ready to make a (trade) deal yet" with China.
Markets are now focused on the U.S. Federal Reserve's
Jackson Hole symposium this week for greater clarity on the
future path of interest rates. FEDWATCH
"We would expect that (Fed Chairman Jerome Powell) will be
looking to reflect again on the state of the international
economy and probably pave the way for a 25-basis point cut in
the Fed funds target rate," INTL FCStone analyst Rhona O'Connell
said in a research note.
Lower interest rates reduce the opportunity cost of holding
non-yielding bullion and weigh on the dollar, making gold
cheaper for investors holding other currencies.
Holdings of the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust GLD , have increased by about 15 tonnes
so far this month, and stood at 843.41 tonnes on Friday.
GOL/ETF
Speculators trimmed their bullish stance in COMEX gold and
cut net long positions in silver contracts in the week to Aug.
13, a report showed on Friday. CFTC/
Elsewhere, silver XAG= dipped 1% to $16.91 per ounce.
Platinum XPT= rose 1% to $852.61 an ounce, while palladium
XPD= gained 2.2% to $1,479.86.