Gold gains as dollar rally stalls, virus cases mount

BENGALURU, Nov 01 (Reuters): Gold prices rose on Friday as the dollar rally paused, with worries over rising COVID-19 cases and uncertainty surrounding next week's US presidential election offering support to the safe-haven metal.

Spot gold was up 0.6 per cent at $1,879.01 by 01:30 p.m. EDT (1730 GMT) following two straight sessions of sharp declines. Bullion is down 0.3 per cent this month.

US gold futures settled up 0.6 per cent to $1,879.90.

"Gold rebounded as the dollar partially reversed its surprising two-day rally," said Tai Wong, head of base and precious metals derivatives trading at BMO.

"Investors are finding the bottom of the recent range a good level at which to add to gold holdings ahead of the hotly contested election next week, which seems likely to return a one-party government that means much bigger and faster stimulus."

The dollar index was steady against its rivals after climbing to its highest in a month in the previous session.