Gold Falls With Dollar In Favor

Gold prices fell on Wednesday, as the dollar rose after preliminary results from the US presidential elections showed a close convergence than expected. US President Donald Trump winning in Florida and advancing in several other states.

Gold Spot fell 0.5% to 1898.97 dollars an ounce, reducing losses by more than one percent posted earlier after some investors took advantage of the price drop to buy gold. US gold futures fell 0.5% to 1900.20 dollars an ounce.

Trump won in Florida and outpaced Democratic rival Biden in other swing states on Tuesday, but Biden expressed confidence that he would win the election by winning in three major states known as the Rust Belt states.

Gold is seen as a hedge against inflation and a depreciating currency, which usually results from significant stimulus.

As for the other precious metals, silver fell 1.7% to $ 23.75. Platinum fell about 1% to $ 858.38 and palladium fell 0.5% to $ 2,270.78.