* Dollar index off 13-mth peak on China-U.S. trade talksnews

* Spot silver up after marking 2-1/2-year low

* Platinum rises after sinking to lowest since 2008

(Adds comment, updates prices)

By Apeksha Nair

BENGALURU, Aug 16 (Reuters) - Gold clawed back from a19-month low on Thursday on short-covering and as the U.S.dollar softened following news that Beijing will hold tradetalks with Washington late this month.

A Chinese delegation led by Vice Minister of Commerce WangShouwen will meet with U.S. representatives led by UnderSecretary of Treasury for International Affairs David Malpass,the Ministry of Commerce said, offering a glimmer of hope forprogress in resolving a conflict that has set world markets onedge. urn:newsml:reuters.com:*:nL4N1V71F9

The news moved the dollar further away from a 13-month peakas risk aversion eased. USD/

Spot gold XAU= was up 0.1 percent at $1,175.07 an ounce asof 0726 GMT. U.S. gold futures GCcv1 were, however, down 0.2percent at $1,182.1.

Earlier in the session, amid a broad commodity sell-off and some stop-loss selling spot prices fell as much as 1.2 percentto $1,159.96, the lowest since January 2017, traders said.

"We expect interest in the precious metal to rekindle as thestrength in the USD fades. But that might be a bit of a whileyet," said John Sharma, an economist at National Australia Bank.

Gold prices, which have largely been pressured by a strongdollar and rising U.S. interest rates, have shed nearly 10percent in 2018.

"The market has come down $50-$60 in a short period, so itis not surprising to see a little short-term recovery," said aSydney-based trader.

"We are higher this afternoon but I don't think prices havestabilised here. There's a lot of volatility and the market isstill under pressure."

Bullion has also lost its appeal as a safe-haven over thepast few months as investors preferred to park assets in thedollar and Treasuries.

Asian shares also pulled away from one-year lows after newsof the trade talks, although Turkey's currency crisis and fearsof an economic slowdown in China kept most markets in the red. urn:newsml:reuters.com:*:nL4N1V71XD MKTS/GLOB

In an ongoing dispute with Turkey, which has roiledfinancial and currency markets, the United States on Wednesdayruled out removing steel tariffs, even if Ankara frees a U.S.pastor, as Qatar pledged $15 billion in investment to Turkey,supporting a rise in the Turkish lira. urn:newsml:reuters.com:*:nL1N1V61S6

Some emerging markets pared their holdings of U.S.Treasuries in June, data from the U.S. Treasury departmentshowed on Wednesday, in what analysts viewed as a move tosupport their currencies as the Federal Reserve started raisinginterest rates this year. urn:newsml:reuters.com:*:nL1N1V61VT

Higher U.S. rates tend to boost the dollar and bond yields,adding pressure on greenback-denominated, non-yielding gold.

Meanwhile, spot silver XAG= was up 0.7 percent at $14.52an ounce after earlier hitting the lowest since February 2016 at$14.30.

Platinum XPT= was 1.8 percent higher at $776.50, afterearlier sinking to its lowest since October 2008 at $751.25.

Palladium XPD= rose 1.8 percent to $857.22 an ounce,having hit an over 13-month low at $832 earlier.

(Reporting by Apeksha Nair in BENGALURU; Editing by Tom Hogueand Subhranshu Sahu) ((Apeksha.Nair@thomsonreuters.com; within U.S. +1 651 848 5832,outside U.S. +91 80 6749 6408/1298; Reuters Messaging:apeksha.nair.thomsonreuters.com@reuters.net))