Gold steadies as dollar, equities slide, but outlook still bleak

LONDON, Oct 2 (Reuters): Gold steadied on Thursday as the dollar fell and weak global manufacturing data unnerved equity investors, but expectations of further gains in the U.S. currency kept demand for the metal sluggish.

Spot gold was up 0.1 percent to $1,214.16 an ounce by 1012 GMT, while U.S. gold futures lost $1.10 to $1,214.40 an ounce. Cash prices had touched a nine-month low of $1,204.40 an ounce on Tuesday.

"There is just very low demand for gold in general ... and although (the dollar rally has paused) and there is still some room before prices fall through the $1,200 level, in the long run I don't see any indicator suggesting a possible upside," said Natixis analyst Bernard Dahdah.