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PRECIOUS-Gold gains on dollar slide as U.S. election drags on

Published 06/11/2020, 09:16 pm
Updated 06/11/2020, 11:42 pm
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* Dollar set for worst week since March

* Silver set for best week since early Aug

* U.S. non-farm payrolls data due at 1330 GMT

* FACTBOX-Who is winning the U.S. election? (Updates prices, adds analyst comment)

By Asha Sistla

Nov 6 (Reuters) - Gold rose on Friday en route to its best week in more than three months as the dollar slid on uncertainty surrounding the U.S. election outcome, with bets for continued pandemic-led stimulus and accommodative monetary policy bolstering bullion's appeal.

Spot gold XAU= rose 0.2% to $1,953.21 per ounce by 1213 GMT. Prices jumped by 2.4% on Thursday, setting them up for a 3.9% weekly gain, which would be gold's best since late July.

U.S. gold futures GCv1 rose 0.4% to $1,954.20.

"The outlook for gold is positive," said Michael Hewson, chief market analyst at CMC Markets UK, citing the political uncertainty weighing on the dollar.

"It could get messy ... The U.S. Federal Reserve is likely to be much more interventionist as a result, because politicians will be too busy squabbling, and the dollar will continue to fall."

The dollar held near a two-month trough, making gold more attractive to buyers using other currencies. USD/

Democrat Joe Biden edged closer to the White House, while President Donald Trump claimed the election was being "stolen" from him, even as votes were still being counted in key states. see the prospects of a prompt stimulus package fading because of a divided Congress, driving expectations that the U.S. Federal Reserve might need to fill the gap. macro environment is supportive for gold because no matter what the (election) outcome, monetary policy is likely to stay supportive and accommodative because economic activity remains fragile due to the rising COVID-19 numbers," said Bank of China International analyst Xiao Fu.

Near-zero interest rates amid massive stimulus globally have helped non-yielding gold to gain more than 28% this year. awaited U.S. non-farm payrolls data later on Friday, which is forecast to show a slight dip in job creation. other precious metals, silver XAG= gained 1.5% to $25.71 an ounce. Platinum XPT= rose 1.1% to $902.43 and palladium XPD= was up 0.6% at $2,390.18.

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