* Donald Trump becomes U.S. president-elect
* Gold jumps nearly 5 pct to six-week peak
* Stocks, dollar tumble is rush for havens (Updates throughout, adds LONDON dateline)
By Jan Harvey
LONDON, Nov 9 (Reuters) - Gold prices jumped nearly 5 percent on Wednesday as U.S. Republican nominee Donald Trump prevailed over Democrat Hillary Clinton in the race for the White House, prompting a dive in stocks and the dollar as investors bolted for safety.
Prices cut gains to dip below $1,300 an ounce as wider markets stabilised after a conciliatory victory speech from Trump but remained 2 percent higher, leaving the metal on track for its biggest one-day rise since Britain's shock vote to leave the European Union in June. MKTS/GLOB
Spot gold XAU= vaulted to a six-week high of $1,337.40 an ounce, up nearly 5 percent, and was at $1,300.80 by 0930 GMT. U.S. gold futures GCv1 for December delivery were up $26.90 an ounce at $1,301.40, having peaked at $1,338.30.
Davis Hall, head of forex and precious metals at Indosuez, said gold's retreat suggested upside for the precious metal was limited, but that gold could still benefit from a Trump victory as the longer-term implications emerged.
"I still think stocks are going to digest this over a 10-day period, and 10 days from now stocks will be lower than they are now," he said. "If the S&P breaks 2,000, gold will be up $100."
The U.S. yield curve moved to its widest in six months, with investors now less certain that the Federal Reserve will raise U.S. interest rates next month. Trump's fiscal policies are seen increasing the country's deficit, and so raising the cost of longer-term borrowing. has mounted that Fed chair Janet Yellen may resign before the end of her term in January 2018, after Trump accused the U.S. central bank of keeping rates low to favour incumbent President Barack Obama, and indicated that he might replace Yellen. dollar is already going down, based on the uncertainty of a Trump presidency," Amanda van Dyke, fund manager at Peterhouse Asset Management, said. "Gold is going to increase by 5-10 percent over the next few days ... the devaluation of the dollar will be correspondingly taken up by the gold price."
"Right now there's over an 80 percent consensus of a U.S. rate rise in December," she added. "That might change because of this."
Governments from Asia to Europe reacted with stunned disbelief to Trump's victory in the U.S. presidential election, while populists hailed the result as a triumph of the people over a failed political establishment. silver XAG= was at $18.65 an ounce, up 1.6 percent, having risen to its highest since Oct. 3 at $18.996 an ounce. Platinum XPT= was 0.1 percent higher at $1,003.31 an ounce, while palladium XPD= was up 0.1 percent at $663.40.
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