for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

PRECIOUS-Gold slips as stocks gain post U.S. presidential debate

* Equity markets bounce after presidential debate
    * Gold snaps six-day winning streak
    * Silver may test support at $18.06 in 3 months- technicals

 (Adds comment, updates prices)
    By Swati Verma
    BENGALURU, Sept 27 (Reuters) - Gold edged lower on Tuesday
after equity markets bounced back, hinting investors were
turning to riskier assets in a belief that Democrat Hillary
Clinton won the first U.S. presidential debate against
Republican Donald Trump. 
    Asian shares recovered from an early bout of nerves while
the Mexican peso surged on Tuesday. 
    "Leading into this event (presidential debate), positioning
in the gold market buying wasn't aggressive in either direction,
it was fairly neutral. I suspect the move subsequent to the
first debate is going to be relatively muted," said ANZ analyst
Daniel Hynes.
    However, the wave of risk-on trading as a consequence of the
U.S. Presidential election could weigh on gold prices in the
short-term with a possible break to the upside amid heightened
volatility, Hynes added.
    Spot gold was down 0.1 percent at $1,336.61 an ounce
by 0727 GMT. By falling on Tuesday, gold snapped a six-day
winning streak.
    U.S. gold futures eased 0.3 percent to $1,340.20 an
ounce.
    "Flows were overall fairly modest given the amount of
coverage this debate had. Gold dipped as expected on the back of
Clinton being seen as victorious," said Alex Thorndike, senior
precious metals dealer, MKS PAMP Group.
    Markets have tended to see Clinton as the candidate of the
status quo, while few are sure what a Trump presidency might
mean for U.S. foreign policy, trade and the domestic economy.
  
    Analysts said gold could be under pressure if Trump emerged
as a winner in the November elections, as the dollar was likely
to benefit from the Republican candidate's stance against low
interest rates.
    "In the long term, if Trump becomes U.S. president, its
effect on the dollar would be positive... Trump has always
criticized the Fed for easing the monetary policy," said Jiang
Shu, chief analyst at Shandong Gold Group.
    Meanwhile, the dollar index, which weighs the
greenback against a basket of other currencies, was steady at
95.276. 
    Among other precious metals, silver edged 0.5 percent
higher to $19.52 an ounce after falling 1.2 percent in the
previous session, its biggest loss in over two weeks.
    Platinum was up 0.9 percent at $1,044.90 after
falling 1.4 percent in the prior day.
    Palladium gained 1.2 percent to $701.20 per ounce. It
was down 1 percent on Monday, the biggest fall in two weeks.

 (Reporting by Swati Verma and Vijaykumar Vedala in Bengaluru;
Editing by Ed Davies and Joseph Radford and Christian
Schmollinger)
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up