Gold fell more than 1 percent on Wednesday as the dollar firmed after Democratic contender Barrack Obama won election as the country's 44th chief executive, stirring the prospect of new policies to banish poll campaign uncertainty.
The dollar extended gains against a basket of major currencies after posting its biggest one-day slide in 13 years the previous session, which in theory reduced bullion's appeal as an alternative investment. Gold was trading at $750.75 an ounce, down $11.20 from New York's notional close on Tuesday, when it rallied around 5 percent on a weak dollar. Follow-through buying pushed up gold to a high of $768 on Wednesday before profit-taking kicked in.
Obama captured the White House after defeating Republican John McCain to make history as the first black US president. He faces a welter of challenges, from tackling an economic crisis to ending the war in Iraq and trying to overhaul the US health care system.
Gold has rebounded more than 10 percent since falling to 13-month low at $680.80 in late October, when investors cashed in bullion to pay losses in stock markets. The metal was still below a two-month high of $931 also hit last month as it struggled to revisit a record high of $1,030.80 in March. The Nikkei rose 3.06 percent on Wednesday to track rallies in the United States. Platinum was trading at $858.50 ounce, up $17.00 from New York's notional close on bargain hunting after tumbling to a five-year low around $732 last week.
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