* Investors await Fed minutes on Wednesday, cenbanks' summit
* Silver up 1% to trade above $17; Palladium hits 2-wk high
* Spot gold may test support at $1,483 per ounce - techs
* GRAPHIC-2019 asset returns: (Updates prices)By Brijesh PatelAug 20 (Reuters) - Gold rose back above $1,500 an ounce onTuesday, rebounding from the previous day's sharp losses asinvestors switched focus to the minutes of the U.S. FederalReserve's latest meeting, which will be closely watched forclues on further interest rate cuts.Spot gold was up 0.6% at $1,503.75 per ounce by 1236GMT, after falling to a near one-week low of $1,492.10 onMonday. U.S. gold futures gained 0.2% to $1,513.80 anounce.Monday's correction followed a sharp price rally earlierthis month that took gold to six-year highs, largely on the backof concerns over the U.S.-China trade war and expectations forfurther cuts in U.S. interest rates.
"This is a rebound after prices dropped for the last fewdays because the sentiment was improving in the financialmarkets and short-term traders took some profits after the(recent) rally," Julius Baer analyst Carsten Menke said."However, the fundamental backdrop for gold remains verysupportive," he added, citing the ongoing trade dispute betweenthe United States and China and a potential interest rate cutfrom the Fed.The minutes from the U.S. central bank's July policy meetingare due on Wednesday, with investors also keeping a close eye onthe central bank's Jackson Hole seminar and this weekend's Groupof Seven summit.Traders see about an 83.8% chance of a 25 basis-pointinterest rate cut by the Fed in September. Lower U.S. interest rates put pressure on the dollar andbond yields, increasing the appeal of non-yielding bullion.
"While the improving market mood has the potential to sendthe precious metal lower in the near term, the medium to longerterm outlook remains bullish," FXTM analyst Lukman Otunuga saidin a note.
The dollar index hit a more than two-week high onTuesday, boosted by slightly higher Treasury yields.Equity markets around the world gained as hopes for stimulusin major economies tempered fears of a global recession. The shift in sentiment towards riskier assets contributed toa more than 1.2% drop in gold prices on Monday, its biggestdaily percentage decline in a month. But prices are still upnearly 17% this year and more than $80 so far this month.On the technical front, spot gold may test support at $1,483per ounce, a break below which could cause a fall to $1,467,according to Reuters technical analyst Wang Tao. Among other precious metals, silver rose above thekey $17 mark, gaining nearly 1% to $17.03 per ounce.Palladium climbed 0.8% to $1,485.01 an ounce afterhitting a more than two-week high of $1,487.18 earlier in thesession. Platinum eased 0.1% to $849.52. (Reporting by Brijesh Patel in Bengaluru; Editing by MikeHarrison, Jane Merriman and Jan Harvey)
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