Oct 20 (Reuters) - Gold prices were stable early on
Thursday, after rising 0.5 percent in the previous session, with
markets keeping a close watch on the final U.S. presidential
debate between candidates Hillary Clinton and Donald Trump.
    
    FUNDAMENTALS
    * Spot gold was broadly steady at $1,268.85 an ounce
by 0053 GMT.
    * U.S. gold futures were little changed at $1,270.00
an ounce.
    * U.S. Republican presidential nominee Donald Trump faces a
formidable challenge when he and Democrat Hillary Clinton face
off in their third and final debate at 0100 GMT Thursday at the
University of Las Vegas Nevada. 
    * The dollar was steady in early trading on Thursday, as
investors awaited the final debate before next month's U.S.
presidential election as well as a European Central Bank meeting
later in the day. 
    * The dollar index, which measures the greenback
against a basket of currencies, was down 0.02 percent at 97.90.
    * The European Central Bank is set to keep policy unchanged
on Thursday but will likely lay the groundwork for more easing
in December as it tries to sustain a long-awaited rebound in
consumer prices. 
    * U.S. inflation, which has under-run the Federal Reserve's
2-percent target for years, is "likely firming," Dallas Fed
President Robert Kaplan said on Wednesday, adding that some
removal of monetary accommodation will be appropriate.
 
    * Crude oil prices rose to a 15-month high on Wednesday
after a surprise U.S. inventory drawdown, boosting energy
shares. 
    * Gold prices in India swung to a premium for the first time
in nine months on Wednesday as jewellers and dealers in the
world's No.2 consumer of the metal ramped up purchases ahead of
major festivals. 
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    DATA/EVENT AHEAD (GMT)
     0600  Germany  PPI                                    Sept 
     0800  Euro     Current account surplus                Aug 
     0830  UK       Retail sales                           Sept 
     1230  US       Philadelphia Fed biz conditions index  Oct 
     1400  US       Weekly jobless claims 
     1400  US       Leading economic indicators            Sept 
     1400  US       Existing homes sales                   Sept 

 (Reporting by Apeksha Nair in Bengaluru; Editing by Richard
Pullin)