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 XAU= was broadly steady at $1,268.85 an ounce by 0053 GMT.
* U.S. gold futures GCcv1 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. USD/
* The dollar index .DXY , 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. MKTS/GLOB
* 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. For the top stories on metals and other news, click TOP/MTL or GOL
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