PRECIOUS-Gold dips as investors await U.S. election outcome

* Nerves stop gold following Biden bets rally in stocks
* Contested result would favour dollar and weaken gold
* New stimulus post election likely to prove key
* Interactive graphic tracking global spread of coronavirus:
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(Adds comment, updates prices)
By Nakul Iyer
Nov 3 (Reuters) - Gold prices fell on Tuesday, with doubts
about the impact on the metal of U.S. election results running
counter to a surge in stock markets on bets of a sweeping
Democrat victory and resulting fiscal boost.
Gold, traditionally a safe haven bet that rises when
equities fall, has instead tended to move in tandem with stock
markets this year on each new injection of fiscal and monetary
stimulus aimed at propping up global growth.
Stocks were broadly higher in early trading in Europe and
Asia as investors bet a victory for Joe Biden's party this week
would preface a swift deal on more backing for American
consumers and companies.
Analysts, however, said gold markets were still as concerned
by the prospect of an unclear outcome and turbulence to follow,
which might drive investors into the perceived safety of the
dollar and weaken commodity prices across the board.
Spot gold XAU= dipped 0.4% to $1,888.10 per ounce by 0737
GMT.
U.S. gold futures GCv1 were little changed at $1,893.20
per ounce.
"Sentiment is hanging by a thread at the moment... Everybody
is quite unsure where the election is headed to, given the
number of possible outcomes," said Howie Lee, economist at OCBC
Bank.
President Donald Trump and Democratic rival Joe Biden made a
last-ditch push for votes in battleground states on Monday as
their campaigns prepared for post-election disputes that could
prolong the presidential election. ED&F Man Capital Markets analyst Edward Meir said that a new
stimulus package may not emerge immediately if Trump gets
re-elected because it will take time to negotiate with the
Democrats.
Also on investor's minds, the Federal Open Market Committee
(FOMC) will begin its two-day meeting on Wednesday. Silver XAG= fell 0.5% to $23.93 an ounce. Platinum XPT=
fell 0.5% to $854.67 and palladium XPD= gained 0.8% to
$2,229.58.
"Markets are stuck because there is ambiguity about who will
win," said Vandana Bharti, assistant vice-president of commodity
research at SMC Comtrade. "Right now ... people want to sit on
cash."