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PRECIOUS-Gold gains as caution sets in ahead of U.S. election

Published 2020-11-02, 05:44 a/m
© Reuters.
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(Updates prices)

* Total COVID-19 cases cross 10 mln in Europe

* Gold to see volatile price swings on election day -analyst

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser

By Asha Sistla

Nov 2 (Reuters) - Gold prices rose on Monday as investors remained nervous ahead of this week's U.S. presidential election and as a surge in COVID-19 cases and renewed lockdowns in some countries increased uncertainty about the global economic outlook.

Spot gold XAU= rose 0.7% to $1,890.96 per ounce by 1213 GMT, while U.S. gold futures GCv1 were up 0.5% to $1,889.60.

"We're only seeing small gains (in gold) and that's not surprising. This is a massive event driven week, obviously with the elections," said OANDA analyst Craig Erlam, adding that gold could see some volatile price swings on election day.

"We're seeing a bit of consolidation in the moves after gold came under heavy pressure last week."

Gold prices fell about 1.2% last week.

Investors are prepared for short-term trading turmoil and major long-term policy shifts on the eve of the U.S. election. is stuck in a trading range, the dollar is a bit better than last week but still within a trading range for the past month or so," said Afshin Nabavi, senior vice president at precious metals trader MKS SA.

"So as long as we don't see a break up or down in the dollar, don't think you're going to see anything exceptional on the precious side."

The dollar, often seen as a rival safe-haven to gold, remained steady against a basket of currencies. total COVID-19 cases crossed the grim milestone of 10 million on Sunday, prompting countries to enact fresh lockdowns. XAG= jumped 1.7% to $24.03 an ounce, platinum XPT= gained 1% to $857.30, while palladium XPD= fell 0.4% to $2,202.56.

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