* Gold down for 3rd straight session
* Palladium, silver at multi-year lows
* Coming Up: U.S. durable goods orders; 1230 GMT (Repeats to additional subscribers)
By Clara Denina
LONDON, Aug 26 (Reuters) - Gold slipped one percent on Wednesday as the dollar gained and European shares recouped some of their losses, while investors closely monitored China's efforts to support its economy.
Sentiment in the more industrial precious metals also deteriorated on worries about global growth. Silver XAG= fell nearly 3 percent to $14.26, its lowest since August 2009 and palladium, mainly used in emissions control systems for cars, trucks and other vehicles, XPD= touched a five-year low.
Spot gold XAU= was down 0.9 percent to $1,129.91 an ounce by 1212 GMT, on track for a third day of losses. The decline added to a 1.2 percent fall on Tuesday, its steepest since July 20, made as global stock markets rebounded.
U.S. gold for December delivery dropped 0.8 percent to $1,129.60 an ounce.
"Nothing looks particularly attractive at the moment, the volatility in equity markets, the very low level of bond yields," Capital Economics chief global economist Julian Jessop said.
"Currencies on the other hand seem to be more driven by perceptions of what the Fed might do on rates, while there haven't really been major and obvious big moves in safe havens."
The dollar rose 0.2 percent against a basket of leading currencies, while European stocks pared earlier losses on hopes of further European Central Bank monetary support.
Worries lingered on whether China's actions would be enough to stabilise its cooling economy or halt a collapse in its stock markets.
"Drip-feed of stimulus might not be sufficient to arrest aggressive bears, or significantly lift the economy in a demand-constrained world," Mizuho Bank said in a note.
That could put the focus back on a potential U.S. interest rate increase this year, dampening gold's appeal.
Federal Reserve's William Dudley speaks later in the day.
"The key factor that underpins the bearish view for gold is very much the Fed rate hike expectation and that possibility is not off the table," said Barnabas Gan, analyst at OCBC Bank in Singapore.
U.S. data on Tuesday showed consumer confidence hit a seven-month high in August, suggesting underlying strength in the economy that could still allow the Federal Reserve to hike rates this year.
OCBC's Gan said gold, which touched a near seven-week high of $1,168.40 last week, could only rally towards $1,200 "if there is confirmation that a U.S. rate hike will not happen this year".
Platinum XPT= was down 0.3 percent at $969.50 an ounce.