Sept 28 (Reuters) - Gold steadied on Monday as the dollar rally took a pause, while traders were on sidelines as political uncertainty built ahead of the first presidential election debate between U.S. President Donald Trump and his Democratic rival Joe Biden this week. FUNDAMENTALS * Spot gold was little changed at $1,860.19 per ounce by 0107 GMT. * U.S. gold futures were down 0.1% at $1,864.50. * The dollar index was down 0.1% against rivals, slightly off a two-month peak hit in the last session. * A firmer dollar makes bullion more expensive for holders of other currencies. * Trump and Biden will have their first presidential election debate on Tuesday. * Investors also looked for any signs of further stimulus after U.S. House Speaker Nancy Pelosi said on Sunday a deal could be reached with the White House on a coronavirus relief package and that talks were continuing. * New orders for key U.S.-made capital goods increased more than expected in August and shipments raced to their highest level in nearly six years, suggesting a rebound in business spending on equipment was underway after a prolonged slump. * Coronavirus cases are edging closer to 33 million around the globe, with 992,470 reportedly dead. * Speculators reduced their bullish positions in COMEX gold and silver contracts in the week to Sept. 22, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. * Holdings in SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.02% to 1,266.84 tonnes on Friday. * Physical gold demand limped higher in top Asian hubs last week, with dealers in India easing discounts to the lowest level in six weeks, as a drop in prices saw a little interest return in the precious metal. * Silver rose 0.3% to $22.93 per ounce, platinum gained 0.4% to $850.74 and palladium was up 0.1% to $2,217.87. (Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich)
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