BENGALURU: Gold held in a narrow $5 range on Monday as investors took to the sidelines ahead of the US midterm elections, which may fuel interest in bullion as a hedge against risk if the result sparks volatility in the wider financial markets.

Spot gold was little changed at $1,231.93 per ounce by 1145 GMT, while US gold futures were flat at $1,233.50 per ounce.

“The market is adopting a wait and see approach,” said Saxo Bank analyst Ole Hansen.

“We are just a day away from the US midterm election, the outcome of which could have an impact both on currencies and several asset classes, so we’re holding relatively stable.”

Opinion polls show a strong chance that the Democratic Party may win control of the House of Representatives in the elections after two years of wielding no practical political power in Washington, with Republicans likely to keep the Senate.

European shares edged up on Monday and the dollar steadied after three straight weeks of gains as investors readied for the elections, which could trigger a bout of volatility for global markets.

Among other precious metals, silver was up 0.1pc at $14.73 per ounce.

Platinum edged up 0.3pc to $869.60 per ounce, having earlier hit its the highest since June 25 at $873. Palladium rose 1pc to $1,126.97.

Published in Dawn, November 6th, 2018