By Nakul Iyer
(Reuters) - Gold ticked higher on Monday as caution crept in ahead of Tuesday's hotly contested U.S. presidential elections, sparking some bids for the safe-haven metal, though a resilient dollar capped gains.
Spot gold rose 0.2% to $1,882.00 per ounce by 0335 GMT, while U.S. gold futures were up 0.2% at $1,882.90 per ounce.
"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.
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 election campaign has been fraught due to coronavirus and the focus is on the immediate aftermath amid fears that a period with no clear picture on the outcome could roil the precious metals market," Avtar Sandu, senior commodities manager at Phillip Futures, said in a note.
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, Sandu added.
Capping bullion's advance, the dollar held onto recent gains, lowering gold's appeal to other currency holders.
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 rose 1.2% to $23.92 per ounce and palladium gained 1.7% to $2,250.19, while platinum fell 0.4% to $845.26.
(Reporting by Nakul Iyer in Bengaluru; Editing by Krishna Chandra Eluri and Rashmi Aich)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU