Oct 28 (Reuters) - Gold was unchanged on Monday, after climbing nearly 1% in the previous session, as trade tensions between the United States and China eased, while a strong dollar also capped gains.
FUNDAMENTALS
* Spot gold XAU= was steady at $1,504.60 per ounce as of 0059 GMT. U.S. gold futures GCcv1 were up 0.1% at $1,507.40 per ounce.
* U.S. President Donald Trump on Friday said the U.S. was doing very well in its trade negotiations with China and that China wants to make a deal "very badly." Both U.S. and China have imposed a series of tit-for-tat tariffs over the past 15 months, stirring global recessionary fears and driving gold prices over 17% higher this year.
* The trade war between the two countries has hit financial markets and forced most major central banks to cut interest rates this year.
* Federal fund futures imply that traders see a 90.4% chance for a 25 basis point rate cut by the U.S. central bank in its month-end monetary policy meeting. FEDWATCH
* The dollar index .DXY , which measures the greenback against a basket of other currencies, rose nearly 0.6% last week.
* Asian shares rose on Monday to a three-month high as appetite for riskier assets got a boost from hopes of a U.S.-China trade deal being sealed as soon as next month. MKTS/GLOB
* Hong Kong anti-government protesters set fire to shops and hurled petrol bombs on Sunday, police said, after riot police fired tear gas, water cannon and rubber bullets to disperse thousands in the Tsim Sha Tsui harbour-front hotel district. The European Union agreed on Friday to London's request for a Brexit deadline extension but set no new departure date, giving Britain's divided parliament time to decide on Prime Minister Boris Johnson's call for a snap election. Hedge funds and money managers raised their bullish positions in COMEX gold and silver contracts in the week to Oct. 22, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. Holdings of the largest gold-backed exchange-traded-fund (ETF), New York's SPDR Gold Trust GLD and the largest silver-backed ETF, New York's iShares Silver Trust SLV , have remained unchanged on Thursday from Wednesday. GOL/ETF
DATA/EVENTS (GMT) 0800 EU Money-M3 Annual Growth Sept 1100 UK CBI Distributive Trades Oct