NEW YORK (
Gold for December delivery spiked around noon by $33 to $1,716.20 an ounce at the Comex division of the New York Mercantile Exchange. The
"If it's just gapped up then maybe people are thinking that Mr. Obama may win it," said Tim Harvey, senior vice president at ETF Securities U.S. "Maybe investors had been too aggressive in the selloff, and ... if Obama is reelected then we would expect more quantitative easing, Mr.
Romney previously has said he would remove Bernanke as the Federal Reserve chairman if he was elected president. Gold analysts have said removal of Bernanke would leave in doubt the Fed's open-ended, mortgage-backed security purchasing program that the central bank has used to promote monetary stimulus.Gold prices plummeted more than $40 an ounce on Friday as investors jumped to the sidelines. Monday brought more buying and a slight bump in the price of the yellow metal, but Tuesday's action reversed the losses from last week.
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