Gold steady as investors eye race for Oval Office

BENGALURU, Nov 03 (Reuters): Gold prices held steady on Tuesday as a jump in riskier assets offset the impact of strict lockdowns across Europe and with wary markets awaiting results of the US presidential election.

Spot gold was up 0.1 per cent at $1,896.77 per ounce by 1059 GMT, while US gold futures rose 0.3 per cent to $1,898.90 per ounce.

Quantitative Commodity Research analyst Peter Fertig said stock market gains were indicative of improved risk appetite and a weaker US dollar index.

"Not to forget we have election day today, so nobody is really willing to take stronger positions now and are just waiting for the results."

President Donald Trump and Democratic rival Joe Biden made a last-ditch push for votes in battleground states on Monday as their campaigns prepared for post-election disputes that could prolong the election process.

Analysts say a Biden win, with his plans for potentially large stimulus, could help gold - seen as hedge against inflation and currency debasement - rally.

"A Democrat sweep is likely to provide gold a handsome tailwind in the form of a weaker dollar," said Lukman Otunuga, Senior Research Analyst at FXTM in a note.

"Although the metal may also derive some strength from a Trump win, the upside is likely to be limited by other forces in the short to medium term."

He said that if the dollar were to appreciate on a contested election outcome, gold's upside could be limited despite risk aversion.