PRECIOUS-Gold pares losses as stocks turn lower ahead of Fed, BoJ meetings

* U.S. dollar, global stocks turn lower
    * Investors wait for Fed meet outcome on Wed, BOJ on Friday
    * Spot palladium inches up to 9-month high
    * GRAPHIC-2016 metal returns:

 (Updates prices; adds comment, second byline, NEW YORK
    By Marcy Nicholson and Jan Harvey
    NEW YORK/LONDON, July 25 (Reuters) - Gold pared losses on
Monday as the dollar and world stock markets turned lower ahead
of central bank meetings in the United States and Japan.
    The world's major economies pledged at a G20 meeting over
the weekend, dominated by Britain's vote last month to leave the
European Union, to use all policy tools available to boost
growth. That lifted both shares and the dollar earlier in the
    Spot gold was down 0.2 percent at $1,319.63 an ounce
by 2:32 p.m. EDT (1832 GMT), while U.S. gold futures for
August delivery settled down $3.9, or 0.29 percent, at
    Gold eased for a second week last week, by 1.2 percent,
after rallying to its highest in more than two years in early
July following the Brexit vote, which drove up demand for the
metal as a haven from risk. 
    "It remains to be seen what the long-term impact of Brexit
will be, but purely in the short term, there wasn't a meltdown
in the UK which could have affected global growth or European
figures," Natixis analyst Bernard Dahdah said.
    "People are going to wait until August to see what these
figures show. Even if they're bad, but less so than people
expected, we could see prices of gold drop further."
    Investors are anticipating a hectic week that includes a
U.S. Federal Reserve meeting, European bank stress tests and
what could be another super-sized slug of stimulus from Japan. 
    "Despite two consecutive weeks of scaling back speculative
net length in gold, positions on COMEX remain relatively
elevated at 94 percent of the record," said UBS Strategist Joni
    "This could make gold vulnerable in the near-term, should
the market increasingly price in a more hawkish Fed." 
    Speculators cut their record bullish bets on COMEX gold
contracts for a second straight week, U.S. data showed on
    "A massive overhang of bets on rising prices is also hanging
over silver like the sword of Damocles," Commerzbank said in a
    Silver, which fell about 3 percent last week, was
down 0.03 percent at $19.60 an ounce.
    Palladium rose as much as 1.2 percent to a nine-month
high at $687.80 an ounce, extending gains after registering its
fifth weekly gain last week, rising 5.2 percent. Sharper
appetite for risk helped the more industrial precious metal
catch up with its peers, which it lagged in the weeks after the
Brexit vote. 
    Platinum was up 0.3 pct at $1,080. 

 (Additional reporting By Nallur Sethuraman and Vijaykumar
Vedala in Bengaluru, editing by Susan Thomas and Tom Brown)