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PRECIOUS-Gold gains as global growth concerns dent risk appetite

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* SPDR Gold holdings down over 1 pct for the week

* Dollar set for best week in six months

* EU slashes euro zone growth outlook (Recasts, updates prices, adds details and comments)

Feb 8 (Reuters) - Gold rose on Friday as a gloomy globaleconomic outlook dented risk appetite, but a firm dollar stemmedbullion's advance and kept the metal on track for its firstweekly decline in three.

Spot gold XAU= was up 0.3 percent at $1,313.74 per ounceat 11:25 am EST (1625 GMT), having recovered from the more thanone-week low of $1,302.11 touched on Thursday.

U.S. gold futures GCv1 were also up 0.3 percent at$1,317.90.

"With equities a little lower here, we're getting someflight to safety in gold," said Bob Haberkorn, senior marketstrategist at RJO Futures.

"The fact that the U.S. economy is not seeing weak data likethe euro zone is supportive of the dollar. If the dollar was alittle weaker today, gold would probably be up $7 or $8, insteadof $3."

Stocks fell worldwide for a third straight day on worriesabout a global slowdown and the lack of any sign of a resolutionto the U.S.-China trade row. MKTS/GLOB

In the latest on the trade conflict between the world's twobiggest economies, U.S. President Donald Trump said he did notplan to meet with Chinese President Xi Jinping before a March 1deadline for a deal.

However, while bullion has risen about 13 percent from1-1/2-year lows touched in August, mostly because of volatilestock markets and a dovish U.S. Federal Reserve, a strong dollarhas driven gold down about 0.3 percent so far this week.

The greenback held firm versus a basket of other currencies .DXY , on track for its best week in six months. USD/

Adding to worries about a global slowdown, the EuropeanCommission cut its forecasts for euro zone economic growth,citing trade tensions and China's slowdown. A logjam inWashington over a border wall with Mexico also played oninvestors' minds.

Gold is considered a safe store of value during economic andpolitical uncertainty.

However, gold's recent gains have failed to translate intoinflows for the world's largest gold-backed exchange-tradedfund, the SPDR Gold TrustGLD . Holdings in the fund havefallen more than 1 percent for the week. GOL/ETF "We see no reason for the outflows in view of the fallingstock markets and declining bond yields, however. We believegold should be in good demand as an attractive alternativeinvestment and a safe haven, partly because there are after allnumerous political risks," Commerzbank said in a note. Meanwhile, palladium XPD= rose 0.5 percent to $1,391.45 anounce.

Spot silver XAG= gained 0.1 percent to $15.72, whileplatinum XPT= was up 0.3 percent at $793.39 (Reporting by Sumita Layek and K. Sathya Narayanan inBengaluru; Editing by Steve Orlofsky) ((Sumita.Layek@thomsonreuters.com; Within U.S. +1 651 848 5832,Outside U.S. +91 8067491638; Reuters Messaging:Sumita.Layek.thomsonreuters.com@reuters.net))


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