* US presidential race in focus, could set tone for Fed
* US fiscal cliff also hinges on U.S. congressional vote
* Indian gold import could fall in 2012-trade group
By Frank Tang
LONDON, Nov 6 (Reuters) - Gold rose for a second day on
Tuesday, largely tracking equities, as the market watched the
U.S. presidential election in which a win for President Barack
Obama could boost bullion by raising expectations for Federal
Reserve stimulus.
Polls show Obama and Republican challenger Mitt Romney
neck-and-neck in a race that will be decided in a handful of
battleground states.
Some analysts said a Romney team which champions fiscal
responsibility and is sceptical of Fed stimulus would be
unlikely to renominate Fed Chairman Ben Bernanke for a third
term in 2014. Easy U.S. monetary policy championed by Bernanke
was a key driver to gold's all-time high last year.
"If Obama is reelected, that would be a boost for gold
because it means continuity on U.S. public spending and Federal
Reserve monetary policy," said Nicolas Berge, a trader at
Geneva-based hedge fund Absolute Capital Group which invests in
commodities futures and currencies.
Spot gold climbed 0.6 percent to $1,693.45 by 11:27
a.m. EDT (1627 GMT), after it hit a nine-week low of $1,672.24
on Monday.
U.S. COMEX gold futures for December rose $10.40 to
$1,693.60, with trading volume on track to finish below average,
preliminary Reuters data showed.
Investors will also closely watch races in the Senate and
House of Representatives that could affect the "fiscal cliff,"
or $600 billion in spending cuts and tax increases that are set
to be automatically triggered at the end of the year. Huge
economic uncertainty related to the first U.S. fiscal cliff in
2011 helped boost gold to a record high.
Gold rose near $1,800 an ounce last month on central-bank
stimulus measures but the rally has since faded as encouraging
U.S. economic data including last Friday's strong jobs data
lowered optimism driven by monetary policies.
Silver edged up 0.2 percent to $31.20 an ounce.
U.S. POLICY QUESTION
Given the Republicans are expected to retain control of the
U.S. House of Representatives, a victory for Obama would be seen
as raising the risk of policy paralysis.
The so-called fiscal cliff set to occur in early 2013 would
hurt U.S. economic growth and underpin safe-haven assets.
"An Obama win is potentially supportive to gold because of
the possibility of a much more difficult (policy) negotiation,"
said David Wilson, analyst with Citigroup.
In the physical market, India's gold imports could fall to
550 tonnes next year, after touching 967 tonnes in 2011, as high
inflation and prices bite into disposable incomes of consumers,
the head of a trade body said on Tuesday.
Among platinum group metals, platinum was down 0.1
percent at $1,536.97 and palladium rose 1.2 percent to
$616.50.
Prices at 11:27 a.m. EDT (1627 GMT)
LAST NET PCT YTD
CHG CHG CHG
US gold 1693.60 10.40 0.6% 8.1%
US silver 31.240 0.112 0.4% 11.9%
US platinum 1542.70 0.00 0.0% 10.2%
US palladium 618.00 15.00 2.5% -5.8%
Gold 1693.45 9.46 0.6% 8.3%
Silver 31.20 0.05 0.2% 12.7%
Platinum 1536.97 -2.27 -0.1% 10.3%
Palladium 616.50 7.53 1.2% -5.5%
Gold Fix 1691.00 -0.75 0.0% 7.4%
Silver Fix 31.40 49.00 1.6% 11.4%
Platinum Fix 1543.00 5.00 0.3% 11.7%
Palladium Fix 617.00 4.00 0.7% -3.0%
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