* Trump leads Biden in Florida
* Gold to trade in choppy, $1,890 to $1,920 range - analyst
* Interactive graphic tracking global spread of coronavirus:
open
* https://tmsnrt.rs/3aIRuz7 in an external browser
(Updates prices, chart)
By Nakul Iyer and Eileen Soreng
Nov 3 (Reuters) - Gold fell on Wednesday as the dollar
strengthened after U.S. President Donald Trump grabbed an early
lead in the key state of Florida, muddying the path for his
Democratic rival Joe Biden.
Spot gold XAU= fell 0.6% to $1,896.44 per ounce by 0358
GMT, having earlier shed as much as 1%.
U.S. gold futures GCcv1 fell 0.7% to $1,897.10.
"The market is losing confidence in a clear run to a Biden
victory at the moment ... We have seen the Biden trade unwind
and a big effect of that is that we have seen the dollar
strengthen," said IG Markets analyst Kyle Rodda.
Trump was leading Biden in the vital battleground state of
Florida on Tuesday, while other competitive swing states that
will help decide the election, including North Carolina,
remained up in the air. Investors were initially limbering up for a win for Biden,
who was expected to inject the market with potentially large
stimulus measures to help weather the economic fallout from the
COVID-19 pandemic.
"I think the odds of a clean sweep are diminishing, almost
by the minute. That reduces the possibility, or the likelihood
at least, of a large stimulus program being agreed to in the
first days of a Biden administration," said Matt Sherwood, head
of investment strategy at Perpetual in Sydney.
Gold has gained about 25% so far this year on the back of
unprecedented global stimulus amid the COVID-19 pandemic since
bullion is considered an inflation hedge.
The dollar .DXY was up 0.7% against a basket of major
currencies. .DXY
"Gold has faded ahead of resistance at $1,912 and is suffering
as it appears Trump will hold the key swing state of Florida,"
said Jeffrey Halley, senior market analyst at OANDA, predicting
a "choppy $1,890 to $1,920 range" in the morning session.
Silver XAG= fell 1.6% to $23.77. Platinum XPT= dropped
0.9% to $858.77 and palladium XPD= was down 0.4% at $2,274.83.
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Gold dips as dollar gains https://tmsnrt.rs/38gwUae
ETF stockpiles and gold prices https://tmsnrt.rs/2TQFiVK
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