PRECIOUS-Gold cuts losses after dive to 5-year low, risks remain
* Gold fell as much as 4 pct briefly to $1,088.05
* Platinum, palladium also recover after plunge to multi-year lows
* Huge trading volumes on Shanghai Gold Exchange (Recasts, adds Citi comment, updates prices and SGE volumes)
By Manolo Serapio Jr
MANILA, July 20 (Reuters) - Gold trimmed losses after falling as much as 4 percent to its lowest in more than five years on Monday as sellers in top consumer China sold off the metal in minutes, just as bullion's safe-haven status takes a fresh knock from mounting expectations of a U.S. rate hike.
Bullion fell to as low as $1,088.05 an ounce - its weakest since March 2010 - shortly after the Shanghai Gold Exchange opened trading, with volumes soaring to a record level.
"The market looks very technically weak and the biggest buyer of all, China, is now selling gold as opposed to buying it on price dips. That's a recipe for weaker prices," said Victor Thianpiriya, an analyst at ANZ Bank in Singapore.
More than 3 million lots were traded on a key contract on the Shanghai Gold Exchange, compared to less than 27,000 lots on Friday, Reuters data showed. Prior to Monday, the volume for July had averaged less than 30,000 lots.
Spot gold was down 1.5 percent at $1,116.43 an ounce by 0711 GMT, bouncing back above the $1,100 support level. Continuación...