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PRECIOUS-Gold gains as U.S. election jitters lifts appeal

Published 11/02/2020, 11:59 AM
Updated 11/02/2020, 04:10 PM
© Reuters.
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(Updates prices)
* Total COVID-19 cases cross 10 mln in Europe
* Lockdowns could have deflationary impact and hurt gold-
analyst
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

By Nakul Iyer
Nov 2 (Reuters) - Gold ticked higher on Monday as caution
crept in ahead of Tuesday's hotly contested U.S. presidential
elections, attracting some bids for the safe-haven metal.

Spot gold XAU= rose 0.4% to $1,884.98 per ounce by 0758
GMT, while U.S. gold futures GCv1 were up 0.2% at $1,884.00
per ounce.
"We are seeing something of a resurgence in safe-haven
buying," said Harshal Barot, senior research consultant for
South Asia at Metals Focus, adding that gold's recent advances
alongside the dollar was indicative of this.
The dollar, often seen as a rival safe-haven asset to gold,
edged 0.1% higher against a basket of currencies.
A major trend for bullion might not emerge until the
election outcome is clear, Metals Focus' Barot said.
Democrat Joe Biden holds a commanding national lead over
President Donald Trump, but Trump has stayed competitive in the
swing states that could decide the White House race.

"The longer-term view is bullish on expectations that we are
going to get a large stimulus deluge from the U.S. which
ultimately should weaken the U.S. dollar and send gold higher,"
said Stephen Innes, chief global market strategist at financial
services firm Axi.
Gold is seen as a hedge against inflation and currency
debasement.
A "blue sweep" of both the White House and Senate would
bolster the outlook for rapid and large-scale fiscal stimulus
which would be positive for precious metals, Avtar Sandu, senior
commodities manager at Phillip Futures, said in a note said.
Europe's total COVID-19 cases crossed the grim milestone of
10 million on Sunday, prompting countries such as Britain and
Portugal to enact fresh lockdowns. "Gold traders are worried that these lockdowns could lead
to deflationary pressures... gold's next trade is really for a
reflation trade," Axi's Innes said.
Silver XAG= rose 1% to $23.88 per ounce, palladium XPD=
gained 1.5% to $2,245.37and platinum XPT= was up by 0.5% at
$853.12.

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