* Gold down for 3rd straight session
* Palladium, silver at multi-year lows
* Coming Up: U.S. durable goods orders; 1230 GMT
(Repeats to additional subscribers)
By Clara Denina
LONDON, Aug 26 (Reuters) - Gold slipped one percent on
Wednesday as the dollar gained and European shares recouped some
of their losses, while investors closely monitored China's
efforts to support its economy.
Sentiment in the more industrial precious metals also
deteriorated on worries about global growth. Silver XAG= fell
nearly 3 percent to $14.26, its lowest since August 2009 and
palladium, mainly used in emissions control systems for cars,
trucks and other vehicles, XPD= touched a five-year low.
Spot gold XAU= was down 0.9 percent to $1,129.91 an ounce
by 1212 GMT, on track for a third day of losses. The decline
added to a 1.2 percent fall on Tuesday, its steepest since July
20, made as global stock markets rebounded.
U.S. gold for December delivery GCcv1 dropped 0.8 percent
to $1,129.60 an ounce.
"Nothing looks particularly attractive at the moment, the
volatility in equity markets, the very low level of bond
yields," Capital Economics chief global economist Julian Jessop
said.
"Currencies on the other hand seem to be more driven by
perceptions of what the Fed might do on rates, while there
haven't really been major and obvious big moves in safe havens."
The dollar rose 0.2 percent against a basket of leading
currencies, while European stocks pared earlier losses on hopes
of further European Central Bank monetary support. .EU
Worries lingered on whether China's actions would be enough
to stabilise its cooling economy or halt a collapse in its stock
markets.
"Drip-feed of stimulus might not be sufficient to arrest
aggressive bears, or significantly lift the economy in a
demand-constrained world," Mizuho Bank said in a note.
That could put the focus back on a potential U.S. interest
rate increase this year, dampening gold's appeal.
Federal Reserve's William Dudley speaks later in the day.
"The key factor that underpins the bearish view for gold is
very much the Fed rate hike expectation and that possibility is
not off the table," said Barnabas Gan, analyst at OCBC Bank in
Singapore.
U.S. data on Tuesday showed consumer confidence hit a
seven-month high in August, suggesting underlying strength in
the economy that could still allow the Federal Reserve to hike
rates this year. ID:nL1N1100WT
OCBC's Gan said gold, which touched a near seven-week high
of $1,168.40 last week, could only rally towards $1,200 "if
there is confirmation that a U.S. rate hike will not happen this
year".
Platinum XPT= was down 0.3 percent at $969.50 an ounce.