Gold rises sharply on presidential election day

Gold futures on the COMEX division of the New York Mercantile Exchange gained by a large margin Tuesday on the US presidential election day.

The most active gold contract for December delivery rose 31.8 dollars, or 1.89 percent, to settle at 1,715 dollars per ounce.

Thanks to gains in consecutive two days, gold has basically recovered its ground lost last Friday.

In the presidential tug-of-war between Republican presidential candidate Mitt Romney and President Barack Obama, market analysts are liable to the opinion that Obama's re-election will be bullish for the precious metal, as there is a greater chance of more easing monetary policies from the Federal Reserve.

Dollar's going weak also supported gold prices. The dollar index, a gauge of the greenback against a basket of currencies, slipped to 80.581 Tuesday from 80.749 Monday. A weaker dollar makes dollar-denominated commodities including gold cheaper for holders of other currencies.

Silver for December delivery gained 90.6 cents, or 2.91 percent, to close at 32.034 dollars per ounce. Platinum for January delivery rose 15.6 dollars, or 1.01 percent, to close at 1,558.3 dollars per ounce.

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