* Gold up 1 pct on firm equities before trimming gains
* Nikkei ends 6.3 pct higher, euro weakens against dollar
* Investors keep an eye on currencies ahead of U.S. election
(Updates prices)
By Lewa Pardomuan
SINGAPORE, Nov 4 (Reuters) - Gold rose as much as 1 percent
on Tuesday before losing some of the gains as investors kept an
eye on the dollar ahead of expected interest rate cuts by major
central banks and the U.S. presidential poll.
The dollar firmed against the euro, extending previous
day's gains as concerns about financial markets and the global
economy prompted investors to seek perceived safety in
dollar-demoninated assets. Clues to the U.S. election result
could begin to emerge after the first polls begin to close at
2300 GMT on Tuesday.
Gold <XAU=> hit a high of $730 an ounce to track a rebound
in equities before slipping to $726.25 an ounce as the euro
weakened against the dollar, still up $3.90 from New York's
close.
"With the dollar re-establishing its strength ahead of the
presidential poll and oil losing recent gains, gold gains are
likely to be curtailed further. This could drag it lower
towards the recent lows of $680," said analyst Pradeep Unni at
Richcomm Global Services.
Gold has bounced more than 7 percent since falling to a
13-month low at $680.80 in late October, when investors cashed
in bullion to pay losses in stock markets. The metal was still
below a two-month high of $931 also hit last month as it
struggled to revisit a record high of $1,030.80 in March.
"Rallies are likely to be used as fresh selling
opportunities. The dollar and U.S. elections this week would be
of prima facie importance to markets," said Unni.
The Nikkei <> ended 6.3 percent higher on Tuesday after a
market holiday on Monday, while the euro fell to $1.2598 <EUR=>
ahead of the U.S. election results. <USD/>.
A win by Democrat Barack Obama, who is leading his
Republican opponent, John McCain, in most polls, would be
marginally better for the dollar, only because the Democrats
already control Congress, analysts say.
That would make it easier for a new administration to push
through activist policies to boost markets.
"In terms of where it goes from here, I think it's very
difficult to say," said David Moore, commodities analyst at
Commonwealth Bank of Australia in Sydney.
"My believe is that we might actually see the gold price
move higher by the end of the year because you might ultimately
see some diversification back towards gold," he said.
Physical demand was slow as price volatility turned away
jewellers. Gold imports to India, the world's biggest bullion
market, fell 27 percent in October year on year, the Bombay
Bullion Association said. []
Oil <CLc1> fell 1 percent on fears of economic recession.
[].
Platinum <XPT=> was trading at $793.00 ounce, down $17 from
New York's notional close. The metal was under pressure from
falling demand for autocatalysts due to a slowing U.S. economy
and poor car sales.
U.S. auto sales plunged 32 percent in October to lows
unseen in a quarter-century led by a 45 percent drop at General
Motors Corp <GM.N> in a collapse that hit every major automaker
and offered little sign that the industry has hit the bottom in
its largest market. []
New York gold futures <GCZ8> slipped $0.8 to $726.0
Precious metals prices at 0617 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 726.25 3.90 +0.54 -12.78
Spot Silver 9.81 0.03 +0.31 -33.58
Spot Platinum 793.00 -17.00 -2.10 -47.83
Spot Palladium 196.00 0.50 +0.26 -46.74
TOCOM Gold 2309.00 10.00 +0.43 -24.54
41338
TOCOM Platinum 2551.00 101.00 +4.12 -52.22
15391
TOCOM Silver 309.80 23.80 +8.32 -42.74
820
TOCOM Palladium 650.00 41.00 +6.73 -51.89
273
Euro/Dollar 1.2623
Dollar/Yen 98.85
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Sambit Mohanty)
