PRECIOUS-Gold slips 1% as equities, U.S. Treasury yields rise

* Speculators cut net long positions in COMEX gold
* SPDR Gold holdings down 0.1% on Friday
* Silver falls 1% to trade below $17

(Updates prices)
By Brijesh Patel
Aug 19 (Reuters) - Gold shed 1% on Monday as a recovery in
share markets and rising U.S. Treasury yields reduced some of
the metal's safe-haven appeal, prompting investors to book
profits.
Spot gold XAU= was down 1.1% at $1,497.64 per ounce by
1219 GMT, while U.S. gold futures GCcv1 slipped 1.1% to
$1,506.80.
"The rally in bond markets seems to have paused at least for
now and we've seen some additional gains in stocks over the
weekend, so a bit of a more optimistic start to the week is
helping to attract profit-taking in gold," Saxo Bank commodity
strategist Ole Hansen said.
"However, gold is holding above the key support level around
$1,480 - $1,485 area. But with bond yields moving up a notch,
there isn't much room for gold buyers," Hansen added.
Benchmark U.S. Treasury yields gained on Monday, moving
further away from record lows after the closely-watched U.S.
yield curve between two- and 10-year bonds inverted for the
first time since 2007 on Wednesday. US/
Equity markets around the world rose, with European markets
rising for a second session, as investors cheered signs of moves
by Germany and China to counter slowing growth. MKTS/GLOB
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.
BIAS
Markets are awaiting the U.S. Federal Reserve's Jackson Hole
symposium this week for greater clarity on the future path of
interest rates. Traders saw an 83.7% chance of a 25 basis-point
cut in September. FEDWATCH
"Given the policy uncertainties that may or may not unfold
later in the week from Jackson Hole ... gold could consolidate
with a downward bias before eventually resuming its upward
momentum," Stephen Innes, managing partner, VM Markets, said in
a 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.
However, the dollar index .DXY was up 0.1%, hovering near
a two-week high hit in the previous session. USD/
Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, fell 0.1% to 843.41 tonnes on
Friday from Thursday. GOL/ETF
Hedge funds and money managers trimmed their bullish stance
in COMEX gold and cut net long positions in silver contracts in
the week to Aug. 13, the U.S. Commodity Futures Trading
Commission (CFTC) said on Friday. Elsewhere, silver XAG= dipped 0.9% to $16.93 per ounce.
Platinum XPT= fell 0.3% to $846.93 an ounce, while palladium
XPD= gained 0.6% to $1,456.81.