Gold steady as investors eye US election outcome

Gold prices were little changed on Thursday after early U.S. election results suggested a lead for Democrat contender Joe Biden, even as the possibility of a contested result remained.

FUNDAMENTALS
Spot gold was little changed at $1,904.66 per ounce by 0111 GMT.


U.S. gold futures rose 0.5% to $1,905.50 per ounce.

Biden said on Wednesday he was headed toward a victory over President Donald Trump in the U.S. election after claiming the pivotal Midwestern states of Wisconsin and Michigan.

But Trump moved to file lawsuits and request for a recount in votes in several battleground states, amounting to a broad effort to contest the results of the election.

Investors increasingly expect the Republican and Democratic parties to retain their respective control of the Senate and the House of Representatives, dimming the prospect of higher taxes and financial regulation even under a Biden win.

The dollar index was flat against a basket of currencies, having risen as much as 0.8% in the previous session.

U.S. private payrolls increased less than expected in October and activity in the services industry cooled, providing early signs of a slowdown in economic growth.

The Bank of England is said to be considering a move into negative interest rates, the Telegraph newspaper reported late on Wednesday, without citing any sources, ahead of the central bank's November monetary policy decision on Thursday.

The U.S. Federal Reserve's policy decision, due at 1900 GMT on Thursday, is also on investors' minds, with the central bank expected to reaffirm its stance of low interest rate.

Silver rose 0.3% to $23.98. Platinum was steady at $869.04, while palladium fell 0.5% to $2,276.97.