* 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 inshare markets and rising U.S. Treasury yields reduced some ofthe metal's safe-haven appeal, prompting investors to bookprofits.
Spot gold was down 1.1% at $1,497.64 per ounce by1219 GMT, while U.S. gold futures slipped 1.1% to$1,506.80.
"The rally in bond markets seems to have paused at least fornow and we've seen some additional gains in stocks over theweekend, so a bit of a more optimistic start to the week ishelping to attract profit-taking in gold," Saxo Bank commoditystrategist 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, movingfurther away from record lows after the closely-watched U.S.yield curve between two- and 10-year bonds inverted for thefirst time since 2007 on Wednesday.
Equity markets around the world rose, with European marketsrising for a second session, as investors cheered signs of movesby Germany and China to counter slowing growth.
Over the weekend, U.S. President Donald Trump and top WhiteHouse officials dismissed concerns that economic growth may befaltering, saying they saw little risk of recession. Trump alsosaid he was "not ready to make a (trade) deal yet" with China.
DOWNWARD BIAS
Markets are awaiting the U.S. Federal Reserve's Jackson Holesymposium this week for greater clarity on the future path ofinterest rates. Traders saw an 83.7% chance of a 25 basis-pointcut in September.
"Given the policy uncertainties that may or may not unfoldlater in the week from Jackson Hole ... gold could consolidatewith a downward bias before eventually resuming its upwardmomentum," Stephen Innes, managing partner, VM Markets, said ina note.
Lower interest rates reduce the opportunity cost of holdingnon-yielding bullion and weigh on the dollar, making goldcheaper for investors holding other currencies.
However, the dollar index was up 0.1%, hovering neara two-week high hit in the previous session.
Holdings of SPDR Gold Trust, the world's largestgold-backed exchange-traded fund, fell 0.1% to 843.41 tonnes onFriday from Thursday.
Hedge funds and money managers trimmed their bullish stancein COMEX gold and cut net long positions in silver contracts inthe week to Aug. 13, the U.S. Commodity Futures TradingCommission (CFTC) said on Friday.
Elsewhere, silver dipped 0.9% to $16.93 per ounce.Platinum fell 0.3% to $846.93 an ounce, while palladiumgained 0.6% to $1,456.81.(Reporting by Brijesh Patel in BengaluruEditing by Emelia Sithole-Matarise and David Holmes)