* European shares in the red
* Platinum recovers from lowest in nearly three weeks
* Palladium slips 1.4 pct (Updates prices, adds comment)By Eileen SorengJan 22 (Reuters) - Gold bounced back on Tuesday frommulti-week lows touched in the previous session as mountingconcerns of an economic slowdown exacerbated by a cut in theInternational Monetary Fund's global growth forecast droveinvestors to the safety of bullion.Spot gold was up 0.3 percent at $1,282.80 an ounce at1323 GMT, recovering from a dip on Monday to its lowest sinceDec. 28 at $1,276.31. U.S. gold futures were littlechanged at $1,282.
"Gold and safe-haven demand are in a stable relationship ...There is a bit of risk-off sentiment," said ABN AMRO analystGeorgette Boele, adding that weakness in European stock marketsand lingering doubts surrounding the U.S.-China trade spat weresupporting gold.Pessimism about global growth weighed on equities after theIMF warned of a darkening outlook and China confirmed itsslowest growth rate in nearly 30 years. In its World Economic Outlook report, the IMF predicted thatthe global economy would grow at 3.5 percent in 2019 and 3.6percent in 2020, down 0.2 and 0.1 percentage points respectivelyfrom last October's forecasts. Gold held its own against gains in the dollar, with thegreenback also sought as a refuge by investors concerned by theglobal economic outlook. The metal was buoyed, too, by limited buying on the dips,analysts said.
"What we have positive for gold is that there is a renewedinvestment demand, so the holdings of the physically peggedproducts continue to grow," said Julius Baer analyst CarstenMenke.Holdings of SPDR Gold , the largest gold-basedexchange-traded fund, rose 1.5 percent on Friday to 809.76tonnes. Gold has risen more than 10 percent since touching1-1/2-year lows in mid-August, mainly because of tumultuousstock markets and a softer dollar.Adding to gold's appeal, U.S. Federal Reserve officials haveleft little doubt that they want to stop raising interest rates,at least for a while. Higher interest rates tend to reduce appetite fornon-yielding gold."On a 12-month horizon and then further out, we see moreupside once the dollar starts to weaken, as more investmentdemand comes back into the market, especially after we get clearevidence that the global economy is slowing," Menke added.
On the technical front, "gold remains in a bullish channelon the daily charts", FXTM research analyst Lukman Otunuga saidin a note. "An intraday breakout above $1,286 is likely to opena path towards $1,295 and $1,300."Spot palladium , which hit a record high of $1,434.50last week on a sustained deficit and rising demand, slipped 1.2percent to $1,345. It earlier touched $1,331, its lowest sinceJan. 16.
Silver rose 0.6 percent to $15.31 an ounce whileplatinum advanced by 0.8 percent to $797 after touchingits lowest since Jan. 2 at $784. (Reporting by Eileen Soreng in BengaluruEditing by Mark Potter and David Goodman)
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