PRECIOUS-Gold steady on weak dollar; trade optimism lifts risk mood

* Non-farm payrolls increase 128,000 in October - data on
Friday
* New head of the ECB to give her first speech later in the
day
* Dollar set to fall for a sixth straight session

(Adds comments, updates prices)
By Diptendu Lahiri
Nov 4 (Reuters) - Gold prices were steady on Monday as the
dollar eased on soft manufacturing survey, while signs of a
U.S.-China trade deal stoked risk appetite, capping gains for
the safe-haven bullion.
Spot gold XAU= was steady at $1,513.19 per ounce, as of
0747 GMT, after dipping 0.2% earlier in the session, while U.S.
gold futures GCv1 were up 0.3% at $1,515.30 per ounce.
The United States and China on Friday said they made
progress in talks aimed at defusing a nearly 16-month-long trade
war that has harmed the global economy, and U.S. officials said
a deal could be signed this month. Markets took further optimism from economic data last week
that eased apprehensions of a slowdown fuelled by the long-drawn
trade war between the world's two largest economies.
In the latest addition, U.S. job growth slowed less than
expected in October, while hiring in the prior two months was
stronger than previously estimated, data from the Labor
Department showed. Asian shares rose to 14-week highs on Monday, as growing
optimism over U.S.-China trade talks and upbeat U.S. job data
boosted global investors' appetite for riskier assets.
MKTS/GLOB
"In the short term, market sentiment is too good for
investors to pay attention to gold," said Margaret Yang Yan, a
market analyst at CMC Markets, adding that a weaker dollar is
limiting losses in the yellow metal.
The dollar had tried to rally on Friday after U.S. payrolls
beat expectations, however, it was undone by a soft
manufacturing survey which left it looking heavy. Against a basket of currencies, the dollar was stuck at
97.218 .DXY having touched a three-month low of 97.107 on
Friday. It was now targeting the August trough of 97.033. USD/
"Until and unless the trade war ends once for all, headlines
on these negotiations will only have an interim effect on gold
prices," said Hareesh V, head of commodity research at Geojit
Financial Services.
Spot gold XAU= may test a resistance at $1,519 per ounce,
a break above which could lead to a gain to $1,534. TECH/C
"As long as gold holds the $1,500 level, markets will be
positive," Hareesh added.
Last week, the Fed cut interest rates for a third time this
year, but signalled there would be no further reductions unless
the economy takes a turn for the worse. In Europe, the new head of the European Central Bank (ECB)
Christine Lagarde will be giving her first speech in the role
later in the day and markets expect she will stick to an easy
policy script left by her predecessor, Mario Draghi.
Among other metals, silver XAG= rose 0.4% to $18.16 per
ounce, platinum XPT= was up 0.9% at $954.93 per ounce, while
palladium XPD= advanced 0.8% to $1,819.13.