PRECIOUS-Gold drops as equities rebound; Trump-Biden debate eyed

* Stronger dollar could push gold to $1,820-$1,800/oz -
analyst
* China's industrial profits grow for fourth straight month
* Interactive graphic tracking global spread of coronavirus:
https://graphics.reuters.com/world-coronavirus-tracker-and-maps/

(Adds comment, updates prices)
By Nakul Iyer
Sept 28 (Reuters) - Gold eased on Monday as positive
economic data from China boosted risk-sentiment, dimming the
safe-haven metal's allure, ahead of the first presidential
election debate between U.S. President Donald Trump and
Democratic rival Joe Biden.
Spot gold XAU= fell 0.1% to $1,858.55 per ounce by 1110
GMT. U.S. gold futures GCv1 were down 0.3% to $1,861.10.
"As China's ongoing economic recovery boosts risk sentiment
and uplifts investor confidence, appetite towards gold may drop
in the short term despite the negative list of factors at play,"
said FXTM analyst Lukman Otunuga.
Data over the weekend showed profits at China's industrial
firms grew for the fourth straight month in August, giving a
boost to equity markets. MKTS/GLOB Bullion, however, failed to take advantage of a softer
dollar, that retreated from a two-month high hit on Friday.
USD/
An appreciating dollar has the potential to drag gold prices
towards $1,820 - $1,800, though gold remains supported by
political uncertainty and rising coronavirus cases in the medium
to longer term, FXTM's Otunuga said.
Markets are now awaiting the first presidential election
debate between Trump and Biden on Tuesday. "If we do have a draw and no one particularly putting in a
strong performance, then the market will continue to be left
with a great deal of uncertainty," potentially benefiting gold,
said Saxo Bank analyst Ole Hansen.
Investors are also keeping an eye on developments over a new
coronavirus relief package after U.S. House Speaker Nancy Pelosi
said on Sunday a deal could be reached with the White House and
talks were continuing.
Elsewhere, silver XAG= rose 0.4% to $22.94 per ounce,
platinum XPT= gained 1.8% to $862.34 and palladium XPD= was
up 0.3% at $2,222.12.
"Once gold stabilizes and we get a sense that we've seen the
worst in terms of a correction (in silver), then silver is
likely to come flying back," Saxo Bank's Hansen added.