Gold retreated in Asian trade on Wednesday as the dollar strengthened after early voting results showed a close contest between President Donald Trump and Democratic rival Joe Biden in the U.S. Presidential election.
Spot gold was down 0.4% at $1,901.72 per ounce by 0211 GMT, having fallen 1% earlier in the session.
U.S. gold futures were 0.4% lower at $1,902.20.
“The market is losing confidence in a clear run to a Biden victory at the moment … We have seen the Biden trade unwind and a big effect of that is that we have seen the dollar strengthen,” said IG Markets analyst Kyle Rodda.
The incumbent president was narrowly leading Biden in the vital battleground state of Florida, while other competitive swing states that will help decide the election outcome, such as Georgia and North Carolina, remained up in the air.
Investors were initially limbering up for a Biden win, who was expected to inject the market with potentially large stimulus measures to help the nation weather the economic fallout from the COVID-19 pandemic.
The dollar was up 0.1% against a basket of major currencies, recovering from a one-week low earlier in the session.
“Gold has faded ahead of resistance at $1,912 and is suffering as it appears Trump will hold the key swing state of Florida,” said Jeffrey Halley, senior market analyst at OANDA, predicting a “choppy $1,890 to $1,920 range” in the morning session.
On the physical front, data from refiner Perth Mint showed its sales of silver products fell in October due to production constraints, while gold sales dropped to their lowest in six months.
Silver fell 0.2% to $24.11 per ounce. Platinum dropped 0.5% to $861.90 and palladium fell 1.1% to $2,256.88.
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