* European shares dip on Fed's view on economic recovery
* Dollar hits one-week high
* Gold shed more than 3.5% on Wednesday
* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices)
By Eileen Soreng
Aug 20 (Reuters) - Gold inched up on Thursday, regaining ground from a more than 3% slide the previous session after the U.S. Federal Reserve minutes highlighted the uncertainties surrounding economic recovery from a pandemic-induced slump and dented risk appetite.
Minutes from the U.S. central bank's last policy meeting showed policymakers were concerned the economy faced a highly uncertain path and more monetary support may be needed. policymakers downplayed the need for yield caps and targets.
Spot gold XAU= rose 0.1% to $1,931.76 per ounce by 1114 GMT. U.S. gold futures GCcv1 fell 1.6% to $1,938.50.
"The belief is still that the Fed is most certainly not going to allow interest rates to rise at this point in time and that some kind of control cannot be ruled out," said Saxo Bank analyst Ole Hansen, adding, the market still sees dips as a buying opportunity.
"The direction of the dollar and bond yields will continue to set the agenda."
The Fed's economic view prompted a wave of selling in global equity markets. MKTS/GLOB
Capping gold's gains, the dollar index .DXY was up 0.2% against rival currencies, rebounding from an over two-year low. USD/ A higher dollar makes gold expensive for holders of other currencies.
"The main fundamentals behind gold have not changed," said Edward Meir, an analyst at ED&F Man Capital Markets.
"Stimulus is still coming in and it's very pre-mature to say we're recovering globally and should see higher rates and stronger dollar; we are many months away from that."
Central banks have rolled out massive stimulus and cut interest rates to near zero to combat the economic toll from the new coronavirus crisis, prompting over 27% gains for the year in gold, considered a hedge against inflation and currency debasement. silver XAG= gained 0.8% to $26.94 per ounce, platinum XPT= dipped 0.4% to $928.38, and palladium XPD= inched up 0.1% to $2,159.12.