* FACTBOX-Who is winning the U.S. election? * European stocks hit two-week high
* Dollar slips to over one-week low
* U.S. Fed policy announcement at 1900 GMT
(Updates prices)
By Asha Sistla
Nov 5 (Reuters) - Gold jumped to a two-week high on Thursday
as the dollar slipped, with investors betting on the likelihood
of bigger economic support measures as Democrat Joe Biden inched
closer to the Oval Office in the U.S. election.
Spot gold XAU= was up 0.9% at $1,919.61 per ounce by 1219
GMT, having earlier scaled its highest peak since Oct. 22 at
$1,920.91.
U.S. gold futures GCv1 gained 1.3% to $1,921.30.
The dollar index fell to a more than one-week low, making
bullion cheaper for those holding other currencies. .DXY
USD/ "A Democrat in the White House would lead to a weakening of
the dollar because of the additional spending and the nature of
the mandates that he would set," said StoneX analyst Rhona
O'Connell.
"The weaker dollar is not necessarily reflecting the loss of
confidence or anything, it's more a question of what the markets
would expect from a Biden presidency."
Biden moved closer to victory on Thursday, while incumbent
President Donald Trump alleged fraud and called for recounts
even as officials tallied votes in the handful of states that
will determine the final outcome. Analysts expect Biden would enact larger stimulus measures
than Trump, but chances of a divided Congress could stymie
Biden's fiscal policy. "If the Democrats win the Senate and Biden becomes the
president we would see a much larger stimulus package than both
parties will probably agree on right now," said Commerzbank
analyst Daniel Briesemann.
Gold is considered a hedge against likely inflation fuelled
by the unprecedented money printing by central banks to ease the
economic blow from the COVID-19 pandemic. Also on investors' radar was the U.S. Federal Reserve's
policy decision at 1900 GMT. Silver XAG= gained 2.9% to $24.61 an ounce. Platinum
XPT= rose 2% to $886.49, while palladium XPD= jumped 3.3% to
$2,364.44.
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FACTBOX-Who is winning the U.S. election? bounces on dollar dip as U.S. elections enter final stretch
https://tmsnrt.rs/3oYAc82
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