* 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)
Our Standards: The Thomson Reuters Trust Principles.