PRECIOUS-Gold up 2 pct on speculation over U.S. election

Tue Nov 6, 2012 1:38pm EST

Related Topics

* Speculation of Obama win sparks sudden midday rally
    * U.S. presidential race in focus, could set tone for Fed


    By Frank Tang
    NEW YORK, Nov 6 (Reuters) - Gold rose 2 percent on Tuesday,
as speculation of an election win for U.S. President Barack
Obama and higher hopes for Federal Reserve stimulus fueled an
abrupt midday rally.
    After trading just 0.5 percent higher throughout the
morning, the metal suddenly jumped $20 in minutes on heavy bets
that a victory for Democrat Obama would lead to an extension of
the Fed's easy monetary policy. 
    Some analysts said a Republican team that champions fiscal 
responsibility and is sceptical of Fed stimulus would be
unlikely to renominate Fed Chairman Ben Bernanke for a third 
term in 2014. 
    "Gold rallied in oversold conditions because early poll
indications suggested Obama could win, and that bolstered hopes
of Bernanke and Fed stimulus," COMEX gold options floor trader
Jonathan Jossen said.
    Still, polls before Tuesday showed Obama and Republican
challenger Mitt Romney neck-and-neck in a race that will be
decided in a handful of battleground states.    
    Spot gold gained 2 percent to $1,717.09 an ounce by
1:11 p.m. EST (1811 GMT). Some analysts also cited technical
buying after gold rebounded from key support at its 100-day
moving average in the last several sessions.
    U.S. COMEX gold futures for December rose $34.30 to
$1,717.50, with trading volume on track to finish above average,
preliminary Reuters data showed.
    
 Prices at 1:11 p.m. EDT (1811 GMT)                            
 
                               LAST      NET    PCT     YTD
                                         CHG    CHG     CHG
 US gold                    1717.50    34.30   2.0%    9.6%
 US silver                   32.085    0.957   3.1%   14.9%
 US platinum                1558.90    16.20   1.1%   11.4%
 US palladium                619.50    16.50   2.7%   -5.6%
 
 Gold                       1717.09    33.10   2.0%    9.8%
 Silver                       32.05     0.90   2.9%   15.7%
 Platinum                   1553.74    14.50   0.9%   11.5%
 Palladium                   616.72     7.75   1.3%   -5.5%
 
 Gold Fix                   1691.00    -0.75   0.0%    7.4%
 Silver Fix                   31.40    49.00   1.6%   11.4%
 Platinum Fix               1543.00     5.00   0.3%   11.7%
 Palladium Fix               617.00     4.00   0.7%   -3.0%
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