* Silver hits highest level since September 2017
* GRAPHIC-Gold in various currencies: http://tmsnrt.rs/1JxbO6Y
(Adds analyst comments, updates prices)
By Karthika Suresh Namboothiri and Asha Sistla
Aug 27 (Reuters) - Gold rose more than 1% on Tuesday as
fears of a possible recession gripped investors following
disappointing U.S. economic data and an ongoing U.S.-China trade
dispute, while silver breached $18 for the first time in nearly
two years.
Spot gold XAU= was up 1% at $1,540.57 per ounce at 1:41
p.m. EDT (1741 GMT), close to a high of $1,554.56 it hit on
Monday, a level last reached in April 2013.
U.S. gold futures for December GCcv1 settled up 1% at
$1,551.80.
U.S. consumer confidence USCONC=ECI inched down in August
and growth in home prices hit its slowest pace in nearly seven
years. "A lot of people are worried about the one economy that is
doing well now, the U.S. economy, and with these numbers for the
consumer confidence, that puts it into question a little bit,"
said Chris Gaffney, president of world markets at TIAA Bank.
"The inverted yield curve is certainly a recessionary
signal. That adds flows into gold as a safe haven."
The U.S. yield curve went deeper into inversion midday
Tuesday as Wall Street's earlier gains faded on renewed concerns
about a U.S. recession and ongoing trade tensions. US/ .N
Comments by U.S. President Donald Trump that China had
offered to resume trade talks assuaged some concerns in the
wider financial markets, though uncertainty prevailed as Beijing
declined to confirm the assertion. MKTS/GLOB
"We continue to have concerns about the global economy,"
said Bart Melek, head of commodity strategies at TD Securities
in Toronto. "The U.S. President's deal with China is pending and
that may be the rhetoric from the White House as opposed to an
actual fact pointing to negotiation."
The trade war between the world's two largest economies has
roiled markets since it began more than a year ago, triggering
fears of a global economic slowdown. This helps gold, often
considered a safer place to park assets during times of global
uncertainty.
Meanwhile, markets priced in a quarter-point cut in interest
rates by the U.S. Federal Reserve next month, and over 100 basis
points of easing by the end of next year. FEDWATCH Lower U.S.
interest rates put pressure on the dollar and bond yields,
increasing the appeal of non-yielding bullion.
Also helping the precious metals complex was a weaker
dollar. .DXY
Spot silver XAG= extended gains for a third straight
session, jumping 3% to $18.15 per ounce. The metal earlier hit
$18.20, its highest level since September 2017.
"Silver had underperformed and now it is catching up with
gold. We see silver as a catastrophe insurance," added TIAA
Bank's Gaffney.
Platinum XPT= climbed 1.3% to $866.04, and palladium
XPD= rose 0.6% to $1,482.63.