SINGAPORE: Gold held firm in a narrow range in Asian trade on Thursday as investors were cautiously optimistic that Democrat Joe Biden would edge past President Donald Trump in a tight race to the White House. Spot gold rose 0.4% to $1,910.33 per ounce by 0719 GMT. US gold futures gained 0.8% to $1,911.60 per ounce.

"It's likely Biden will secure a presidential victory and this has boosted confidence as a Democratic president may point to a bigger stimulus," said Margaret Yang, a strategist with DailyFx, which covers currency, commodity and index trading.

Analysts expect Biden will likely enact larger stimulus measures than Trump, even as chances of a divided Congress could stymie Biden's fiscal policy efforts. Gold tends to benefit from widespread stimulus as it's considered a hedge against inflation.

"Overall market sentiment remains mixed, as approval of the relief package is likely to see more hurdles," said ANZ commodity strategist Soni Kumari. But gold will likely gain regardless of the election outcome as focus eventually turns to a supportive low-interest rate backdrop, she added.

Low-interest rates lower the opportunity cost of holding non-yielding bullion.

"Gold traders are not excited about this outcome," DailyFx's Yang said, noting a contested result could mean a smaller fiscal stimulus plan.