* Risk to growth from currency pressures remains

* Higher U.S. interest rates to undermine gold

* GRAPHIC-2018 asset returns: http://tmsnrt.rs/2jvdmXl

(Updates prices)

By Pratima Desai

LONDON, Aug 16 (Reuters) - Gold prices bounced from 19-monthlows on Thursday as the dollar slipped on news that China andthe United States will hold trade talks this month, althoughsentiment remained negative.

Spot gold XAU= was up 0.6 percent at $1,181.06 an ounce at1149 GMT from an earlier low of $1,159.96, its weakest sinceJanuary last year. U.S. gold futures GCcv1 climbed 0.2 percentto $1,187.9.

Gold prices have tumbled more than 10 percent since theirApril peak above $1,365 an ounce.

The meeting between a Chinese delegation and U.S.representatives offers hope for progress in resolving the tradeconflict that has unnerved financial and commodity markets inrecent weeks. urn:newsml:reuters.com:*:nL4N1V71F9

Political and economic uncertainty have seen investors optfor the safety of U.S. Treasuries and the U.S. currency, whichwhen it rises makes dollar-denominated gold more expensive forholders of other currencies, potentially subduing demand.

"I'm viewing the news of the talks as arresting the slide,not reversing it. The talks are low level, we are not out of thewoods yet, sentiment is still bearish," said Ole Hanson, head ofcommodity strategy at Saxo Bank.

"For a significant gold recovery we need to see the dollarlose some of the strength that has built up. The risk toemerging market growth from currency pressures is not going awayimmediately."

The dollar has gained about 8 percent against a basket ofother major currencies .DXY since the middle of February.

Part of the reason behind its ascendancy has been higherinterest rates in the United States and the prospect of more tocome this year and next. FRX/ FED/R

Higher interest rates raise the cost of holding gold, whichearns nothing and needs money to store and insure.

"The underlying narratives of a strong dollar and relativelyhigh U.S. interest rates still seem to be the predominantheadwinds for gold," said INTL FCStone analyst Edward Meir.

Silver, platinum and palladium, which have industrialapplications, also rallied.

Silver XAG= gained 1.2 percent to $14.60 an ounce afterearlier hitting the lowest since February 2016 at $14.30.

Palladium XPD= added 4.8 percent to $882.97 an ounce,having hit a more than 13-month low at $832 earlier.

Platinum XPT= climbed 2.7 percent higher to $783.90, afterearlier sinking to its lowest since October 2008 at $751.25.

Platinum, under pressure for some years, is oversupplied. Itis heavily used in autocatalysts for diesel cars, which havefallen out of favour since 2015's Volkswagen VOWG_p.DE emissions-rigging scandal.

The world's top producer of platinum is South Africa, whichsaw its rand currency ZAR= hit a two-year low due to contagionfrom the Turkish lira earlier this week.

A lower rand cuts costs for South African miners whenexpressed in dollars, which means they can keep producing anddelaying the process of rebalancing the market.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^GRAPHIC-2018 asset returns: http://tmsnrt.rs/2jvdmXl

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Pratima Desai; additional reporting by ApekshaNair in BENGALURU; Editing by Alexander Smith and Jan Harvey) ((pratima.desai@thomsonreuters.com; +44 207 542 5113))