Gold gains as caution sets in ahead of US election

BENGALURU, Nov 02 (Reuters): Gold prices rose on Monday as investors remained wary of the results of upcoming US presidential elections and as a surge in COVID-19 cases and renewed lockdowns in some nations raised economic concerns.
Spot gold rose 0.5 per cent to $1,886.66 per ounce by 1018 GMT, while US gold futures were up 0.4 per cent to $1,887.60.
"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 gold could see some volatile swings in prices 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 per cent last week.
Investors are prepared for short-term trading turmoil and major long-term policy shifts, on the eve of Tuesday's US election.
"(Gold) 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, edged 0.1 per cent higher against a basket of currencies.
Europe's total COVID-19 cases crossed the grim milestone of 10 million on Sunday, prompting countries such as Britain and Portugal to enact fresh lockdowns.
Silver gained 1.2 per cent to $23.92 an ounce, palladium rose 0.3 per cent to $2,217.74 and platinum was up 0.3 per cent at $851.14.