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PRECIOUS-Gold holds firm as Biden leads in White House race

    * FACTBOX-The race for control of the U.S. Senate
            
    * Trump campaign says it is suing in key states
    * Equities gain, dollar pressured

 (Adds comment, updates prices)
    By Nakul Iyer
    Nov 5 (Reuters) - Gold held firm in a narrow range on
Thursday as investors were cautiously optimistic that Democrat
Joe Biden would edge past President Donald Trump in a tight race
to the White House. 
    Spot gold         rose 0.4% to $1,910.33 per ounce by 0719
GMT.
    U.S. gold futures        gained 0.8% to $1,911.60 per ounce.
    "It's likely Biden will secure a presidential victory and
this has boosted confidence as a Democratic president may point
to a bigger stimulus," said Margaret Yang, a strategist with
DailyFx, which covers currency, commodity and index trading.
    Analysts expect Biden will likely enact larger stimulus
measures than Trump, even as chances of a divided Congress could
stymie Biden's fiscal policy efforts.
    Gold tends to benefit from widespread stimulus as it's
considered a hedge against inflation.             
    "Overall market sentiment remains mixed, as approval of the
relief package is likely to see more hurdles," said ANZ
commodity strategist Soni Kumari.
     But gold will likely gain regardless of the election
outcome as focus eventually turns to a supportive low-interest
rate backdrop, she added. 
    Low-interest rates lower the opportunity cost of holding
non-yielding bullion.  
    Biden on Wednesday predicted victory after winning two
critical U.S. states, while Trump alleged fraud, filed lawsuits
and demanded recounts.                          
    "Gold traders are not excited about this outcome," DailyFx's
Yang said, noting a contested result could mean a smaller fiscal
stimulus plan. 
    Also supporting bullion was a subdued dollar, making bullion
cheaper for those holding other currencies. Asian equities also
gained alongside bullion.                    
    "Markets expect a stimulus package and the certainty of an
outcome, regardless of it being contested, now has reduced
investors' fears and prompted them to move back into assets like
gold and equities," said Michael Langford, executive director at
corporate advisory and consultancy firm AirGuide.
    Silver        rose 1.6% to $24.29 an ounce. Platinum       
gained 0.8% to $875.88, while palladium        was up 1.7% at
$2,326.64.

    
 (Reporting by Nakul Iyer and Eileen Soreng in Bengaluru;
Editing by Krishna Chandra Eluri and Shailesh Kuber)
  
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