Gold Falls as Investors Await US Election Results

Gold erased earlier gains on Tuesday, falling due to a stronger dollar and rising Treasury yields, while investors awaited the results of the US midterm elections for indications on monetary policy, according to "Reuters".

The agency quoted Fuad Rzakadeh, a market analyst at "Forex.com", saying: "A landslide victory for the Democrats could put pressure on the dollar, as it would make it difficult for the administration to pass laws, including measures related to the debt ceiling. If the dollar falls, this is one way gold might find some support."

Spot gold fell 0.5% to $3928.49 per ounce by 17:11 GMT, recovering from an earlier drop of 1% that pushed prices to $3893.31 per ounce.

A decline in oil prices eased some inflation concerns, allowing gold to record short-term gains before prices dropped again.

US gold futures for December delivery fell 0.8% to $3938.90.

Among other precious metals, spot silver dropped 1.8% to $49.74 per ounce, platinum fell 1.5% to $1426.91, and palladium slid 3.4% to $936.50.