Gold was calling a narrow victory for Barack Obama in the US presidential election in the last day’s trading before voting starts.
An Obama win is seen as the best outcome for gold as it would continue the current policy of prolonged monetary easing to kick start the US economy.
Republican challenger Mitt Romney is more likely to put the monetary brakes on, a move that could bolster the US dollar and encourage a shift away from gold as a wealth hedge.
Jan Skoles from The Real Asset Co, said that there is overwhelming evidence of Democrats destroying the dollar more than Republicans, and that second-term presidents help the gold price even more in their second stint as spending rises and devalues the currency even more.
Spot gold rose US$4.7 to US$1,689.4, though sliver weakened slightly to US$31.14 while platinum fell US$2 to US$1,536.
Gold made headway despite renewed concerns over Greece, which sent the euro to a 2-month low against the US dollar. Gold traditionally has an inverse relationship with the US currency.
Elsewhere, Credit Suisse issued a gloomy note on prospects for the South African gold industry.
The broker sees no change in the long term decline in production from the country.
Industrial disputes this year will mean 2012 production comes in lower than 2011, which is ominous for the prospects of future employment in the country given about 36000 permanent jobs have already been lost in the last six years. Labour relations will be tense going forward as well, believes the broker.
It has an 'outperform' rating on Anglogold Ashanti, a 'hold' on Gold Fields and 'underperform' is the verdict on Harmony.
Major movers
Randgold Resources (LON:RRS) up 100p at 7,425p
African Barrick Gold (LON:ABG) down 8.5p at 418.3p
Anglogold Ashanti (LON:AGD) down 111.5p at 1,913.5p