* Gold up as much as 1 pct on firm equities, steadier
dollar
* Nikkei bounces 3.7 pct
* Investors keep an eye on currencies ahead of U.S.
election
(Updates prices)
SINGAPORE, Nov 4 (Reuters) - Gold gained as much as 1
percent on Tuesday to track a rebound in the equities market,
with investors keeping an eye on the dollar ahead of expected
interest rate cuts by major central banks and the U.S.
presidential poll.
The dollar rose on Monday ahead of the election as concerns
about financial markets and the global economy prompted
investors to seek perceived safety in dollar-demoninated
assets. It was little changed in early trade on Tuesday.
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=> was trading at $726.65 an ounce, up $4.30 an
ounce from New York's notional close on Monday, when it rose as
high as $738.15 before trimming gains due to a firm dollar.
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 analyst Pradeep
Unni at Richcomm Global Services.
The Nikkei <> gained 3.7 percent on Tuesday after a
market holiday on Monday, while the dollar was little changed
against a basket of other currencies 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, if 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. []
Platinum <XPT=> was trading at $804.00 ounce, down $6 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 bottom in its
largest market. []
New York gold futures <GCZ8> added $2.8 an ounce to
$729.8.
Precious metals prices at 0209 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 726.65 4.30 +0.60 -12.74
Spot Silver 9.79 0.01 +0.10 -33.72
Spot Platinum 804.00 -6.00 -0.74 -47.11
Spot Palladium 200.00 4.50 +2.30 -45.65
TOCOM Gold 2308.00 9.00 +0.39 -24.58
21802
TOCOM Platinum 2590.00 140.00 +5.71 -51.49
8120
TOCOM Silver 307.10 21.10 +7.38 -43.23
440
TOCOM Palladium 655.00 46.00 +7.55 -51.52
157
Euro/Dollar 1.2621
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.
(Reporting by Lewa Pardomuan; Editing by Kim Coghill)
