* Gold hits support after biggest 1-day drop since June
* Investors cautious ahead of neck-and-neck U.S. election
* Hong Kong’s gold shipments to China jump in September
By David Brough
LONDON, Nov 5 (Reuters) – Gold prices firmed a touch on
Monday after posting their biggest one-day drop since mid-June
in the previous session as investors took to the sidelines ahead
of Tuesday’s U.S. presidential election.
Gains in the metal were limited by weakness in stock markets
and a rise in the dollar, however, as low-risk assets rose at
the start of a week in which the United States votes in a new
president.
The U.S. elections will be closely watched by financial
markets, with incumbent Barack Obama seen as more supportive of
continued stimulus measures, while Republican challenger Mitt
Romney is expected not to favour additional easing.
A Romney team sceptical of strong Federal Reserve stimulus
would be unlikely to renominate Fed chief Ben Bernanke for a
third term in 2014.
“Although the race is close, I think if Romney won, it would
be a shock to the market,” said Mitsubishi precious metals
strategist Matthew Turner.
Continued…
