PRECIOUS-Gold slides as dollar, stocks jump as FBI clears Clinton in email probe

* Polls show Clinton in the lead for Tuesday election
    * Clinton win could mean further losses for gold
    * Gold support at $1,278/oz, 200-day moving average
    * Spot palladium bucks the trend and rallies 5.3 pct

 (Adds comment, byline, NEW YORK dateline; updates prices)
    By Marcy Nicholson and Pratima Desai
    NEW YORK/LONDON, Nov 7 (Reuters) - Gold prices fell on
Monday, posting their biggest one-day drop in five weeks as the
dollar and stocks rallied on news Hillary Clinton would not face
criminal charges over her use of a private email server.
    This boosted her chances of winning the U.S. presidential
election on Tuesday. The final result is expected on Wednesday.
    The spot gold price was down 1.8 percent at $1,280.70
an ounce by 2 p.m. EST (1900 GMT). U.S. gold futures 
settled down 1.9 percent at $1,279.40 per ounce.
    "It's risk on after the FBI said it won't be taking the
email saga any further," said Warren Patterson, commodity
strategist at ING. "Polls are showing Clinton in the lead."
    The FBI said on Sunday it stood by its earlier finding that
no criminal charges were warranted against the Democratic
presidential candidate. 
    "If Clinton wins, there's going to be a further correction
in prices and gold may even go down to $1,250," said Joshua
Rotbart, managing partner at Hong Kong-based bullion services
provider J. Rotbart & Co.
    The latest Washington Post-ABC and final NBC-Wall Street
Journal polls published on Sunday showed Clinton ahead of
Republican rival Donald Trump.  
    "There is a general perception in the market that if Trump
wins, gold will go through the roof based on the uncertainty his
presidency will usher in and his protectionist stance," said
Amanda van Dyke, fund manager at Peterhouse Asset Management in
    Stock markets around the globe surged along with the U.S.
dollar, while the VIX index, dubbed the "fear
index" of U.S. stocks, posted its biggest one-day fall in over
four months. 
    A stronger U.S. currency makes dollar-denominated gold
cheaper for holders of other currencies, a relationship used by
funds and short-term traders to generate buy and sell signals.
    "U.S. election risk and the potential for a Tuesday surprise
(e.g., Trump victory) should dominate gold trading sentiment in
the short term," Citi Research said in a note to clients.
    In a research note late Friday, ETF Securities said a Trump
victory could see gold prices rise as much as 10 percent while a
Clinton win may cause gold prices to fall as much as 6 percent.
    On the technical front, support for gold was seen around the
200-day moving average of $1,278 an ounce.
    Silver was down 1 percent at $18.21 an ounce while
platinum rose 0.1 percent at $997.85. Palladium 
was up 4.5 percent at $651.85, after rising as high as 5.3
percent to $656.90.

 (Additional reporting by Apeksha Nair and Koustav Samanta in
Bengaluru; editing by David Clarke, G Crosse)