Gold dipped on Wednesday as the dollar ticked up after Republican President Donald Trump and Democratic rival Joe Biden sparred in the first U.S. presidential debate ahead of the Nov. 3 election.
Spot gold fell 0.5% to $1,889.66 per ounce by 0357 GMT, after hitting a one-week high of $1,899.12 earlier in the session.

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Spot gold was on track to post it worst monthly fall since Nov. 2016, dropping 4% so far this month.

U.S. gold futures were down 0.4% at $1,895.40.

The dollar index was 0.1% higher against rivals and was heading for its biggest monthly rise since July 2019.

"The U.S. dollar is still dominating the gold price movement... The debate didn`t give us too much of surprises," said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading.

The debate in Cleveland turned chaotic as the U.S. presidential candidates faced off over Trump`s leadership on the COVID-19 pandemic, the economy and taxes.

Also taking some shine off gold was upbeat Chinese data on manufacturing and services activity that beat analysts` expectations and bolstered the economic recovery.

Investors are tracking the progress of a new U.S. coronavirus relief bill after U.S. House Speaker Nancy Pelosi said she hoped for a deal this week with the White House, following talks with Treasury Secretary Steve Mnuchin.

Gold, seen as a hedge against inflation and currency depreciation, has gained about 25% so far this year, supported by monetary stimulus from major central banks and governments.

"Gold has entered into a temporary consolidation phase but this may be a short-term correction in a long-term bull run, as we move towards a second U.S. fiscal stimulus," Yang added.

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Silver slipped 1.1% to $23.91 per ounce, platinum fell 0.9%, to $876.27 and palladium was up 0.4% to $2,318.35.