* Gold rises back above $1,880/oz after volatile week * Japan's Tanaka recycles record gold volume in August * Coming up: G7 finance ministers' meeting in France By Jan Harvey LONDON, Sept 9 (Reuters) - Gold prices climbed nearly 1 percent on Friday, clawing back more of the week's losses, ahead of a G7 finance ministers' meeting this weekend at which officials will come under heavy pressure to take action to revive economic growth. The precious metal has had a volatile week, trading in a near-$130 range after a swift correction followed Tuesday's record high at $1,920.30 an ounce. Spot gold was up 0.7 percent at $1,881.49 an ounce at 0904 GMT, having earlier risen as high as $1,885.50. "Personally, I think we ought to test the $1,900 level later this afternoon," said Afshin Nabavi, head of trading at MKS Finance in Geneva. "Market attention will be on the G7 meeting that starts today in France and will last over the weekend, where speculation has been that a concerted effort to stimulate the global economy could be announced." France has called for a coordinated response from the Group of Seven nations after anxiety over Europe's debt crisis led world stock markets to drop in recent weeks, though differences between the economic problems facing the United States, Britain and euro zone states are complicating the task. Concerns over euro zone debt and speculation that more U.S. monetary easing could be on the cards kept gold firmly underpinned during this week's correction, while lower prices attracted investors in physical metal back to the market. Gold also benefited from muted interest in assets seen as higher risk. European shares fell as traders were underwhelmed by a $447 billion jobs package unveiled by U.S. President Barack Obama on Thursday, and after the Federal Reserve unveiled no new stimulus measures. The euro meanwhile fell to a near six-month low against the yen and a two-month low versus the dollar as investors sold the single currency after the European Central Bank dropped its policy tightening bias the previous day. "Weaker developed market growth and the enhanced risk of debt-induced deflation in the United States and Europe materially enhanced the appeal of gold as a safe haven asset," said Morgan Stanley in a note. U.S. gold futures GCv1 for August delivery were up $26.60 an ounce at $1,884.10. SCRAP RETURNS TO THE MARKET There were some signs that high prices were attracting recycled metal back to the market, however. Japan's largest bullion house, Tanaka Kikinzoku Kogyo, said it recycled a record 1.9 tonnes of gold from jewellery and ingots brought in by customers in August alone as prices hit record highs. That outstripped the 1.831 tonnes of gold it recycled in the first six months of the year. Among other precious metals, silver was up 0.7 percent at $42.62 an ounce. The gold:silver ratio -- the number of silver ounces needed to buy and ounce of gold -- steadied around 44 after dropping as low as 31 in April as both metals hit record highs. Buyers are wary of silver after its sharp correction early this year. "With the deterioration in the economic outlook for both Europe and the U.S., and the recovery in Japan appearing to have paused at least temporarily, demand for silver from the global electronics industry appears to be under threat, which may leave the metal vulnerable to potential price underperformance versus gold," said Natixis in a weekly report. Spot platinum was down 0.1 percent at $1,853.40 an ounce, while spot palladium was up 0.6 percent at $756.78 an ounce. (Editing by James Jukwey)

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