* 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 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%