Gold slips as robust dollar dents appeal

BENGALURU, Oct 01 (Reuters): Gold prices fell to a near two-month low on Tuesday, weighed down by a stronger dollar, while hopes of progress in the US-China trade talks lifted equity markets in a further hit to bullion's appeal.

Trading was thin in Asian hours as traders in top consumer China went for a long public holiday.

Spot gold was 0.8 per cent lower at $1,459.91 per ounce, as of 0750 GMT, after declining to its lowest since Aug. 6 at $1,458.50 earlier in the session. US gold futures were 0.4 per cent lower at $1,467.20 per ounce.

The dollar's potential to gain further and some optimism around a potential trade deal between Washington and Beijing weighed on gold, said Michael McCarthy, chief market strategist at CMC Markets.

"We also broke through the $1,480-$1,490 support level and on a technical basis that in itself is enough to spur further selling," he said.

The dollar index against a basket of six major currencies climbed to a more than two-year high, as investors waited for September US manufacturing data to determine how far policymakers will go to bolster growth.

Asian shares ticked up as some investors clung to hopes that the fourth quarter will bring progress in resolving the US-China trade war that has cast a shadow over the global economy.