Gold loses sheen but likely to glitter again if Trump wins US presidential elections

NEW DELHI: Gold lost much of the sheen on Monday as multiple surveys suggested that Democratic candidate Hillary Clinton was on a comfortable lead to win the US presidential race.

After five sessions of gains, gold prices on Monday fell by Rs 300 per 10 gm to crack below the Rs 31,000 level. The sentiment took a hit on strengthening dollar demand and positive developments on the US poll which puts Hillary Clinton in leading position.

But, there will be uncertainty even though various opinion polls have given their verdict in favour of the democratic candidate. Growing uncertainty over the outcome of the tight US presidential race had raised demand for gold.

The bullion counter is expected to witness a lot of volatility ahead of the outcome of the US presidential election on November 8.

If Donald Trump wins, the international price of gold could touch $1400 per ounce, said, experts. Gold rallied for the fourth straight week till Monday, marking the longest rally since July 8.

Citigroup in a report earlier this month said that international gold prices could climb to as high as $1,400 if Trump wins. But, opinion polls are pointing otherwise.

If Hillary Clinton clinches a win in US presidential election gold might slip further as it would rekindle risk on sentiment again along with the rise in the dollar.

Back home, gold price saw a good rally on the back of festive demand. But analysts say the yellow metal could test its near-term highs, depending on the outcome of US election results.

Gold has been an asset class of choice in times of uncertainty. Historically, the bullion is considered a natural hedge against odds and tends to outperform equity and other asset classes.