PRECIOUS-Gold steady on trade war, Brexit jitters; dollar limits upside

* Dollar scales more than two-year high
* Traders see 91% chance of 25 bps Fed rate cut in Sept
* Investors await Brexit vote, U.S. manufacturing survey
data

(Updates prices)
By K. Sathya Narayanan
Sept 3 (Reuters) - Gold prices held steady on Tuesday as
uncertainties surrounding U.S.-China trade relations and
Britain's departure from the European Union offset pressure from
a stronger dollar.
Spot gold XAU= was down 0.1% at $1,529.40 per ounce at
1145 GMT, but still not far off its more than six-year high of
$1,554.56. U.S. gold futures GCcv1 were up 0.6% at $1,538.60.
"We are having a battle right now against multiple layers of
uncertainties in the market and a strong dollar," Saxo Bank
commodity strategist Ole Hansen said.
"The trade talks between U.S. and China are going nowhere.
The political debacle in the UK with Brexit, where we are
potentially facing another vote before the day is over, is
adding enough underlying support to gold to offset the strength
in dollar."
The dollar .DXY climbed to a more than two-year high
against other major currencies, making dollar-denominated gold
costlier for investors holding other currencies. USD/
On the trade front, China has lodged a complaint at the
World Trade Organization over U.S. import duties, trashing the
latest tariff actions as violating the consensus reached by
leaders of both countries at a meeting in Osaka. In Britain, lawmakers will decide on Tuesday whether to move
towards a snap election when they vote on the first stage of
their plan to block Prime Minister Boris Johnson from pursuing a
no-deal Brexit. But analysts said that fears of a slowing global economy,
negative yielding debts around the world and hopes for interest
rate cuts by global central banks provided support for gold.
"Given this week's economic calendar is jam-packed with
crucial economic releases that will shape monetary policy
expectations for the Sept. 18 Federal Open Market Committee
meeting, gold traders are trading very delicately waiting for
more convincing U.S. economic signals," VM Markets Managing
Partner Stephen Innes said in a note.
Investors are awaiting the U.S. manufacturing survey by the
Institute for Supply Management (ISM), due at 1400 GMT, for some
guidance on U.S. economic conditions.
Federal fund futures FEDWATCH implied traders saw a 91%
chance of a 25 basis point rate cut by the U.S. Federal Reserve
this month.
"Rate cut will happen almost no matter what kind of economic
data we're going to be presented with from now on until the Fed
meeting but any acceleration to the weaker side could increase
the expectations of how big the cut would be," Saxo Bank's
Hansen said.
Silver XAG= slipped 0.1% to $18.44 per ounce. Platinum
XPT= was up 0.8% at $937.43 per ounce, while palladium XPD=
dipped 0.4% to $1,525 per ounce.