Gold prices have surged two per cent this morning after Republican nominee Donald Trump won the 2016 US Presidential election, but have lost earlier gains to trade back below the $1,300 mark.
Spot gold prices surged to a high of almost five per cent, reaching $1,337.38 an ounce in the early hours as the polls suggested Democratic nominee Hillary Clinton would lose the race to the White House against the billionaire tycoon-turned-politician.
Bullion has shed some of its earlier gains that took it above $1,300 and is now trading 1.8 per cent, or $23.32, higher to $1,299.00.
Investors have ploughed funds back into safe haven assets as equities plunged this morning, as Republican presidential nominee Trump edged closer to victory.
Last week, Wayne Gordon, executive director for commodities and foreign exchange at UBS' wealth management unit, told Bloomberg Television a Trump win could cause gold to near $1,400, whereas a Clinton win will cause it to fall by between $20 and $30.
Before the election, other analysts predicted gold prices could boom to as much as $1,850 by the end of 2017 in the event of a Trump win.
The dollar was in freefall against most major currencies this morning, including the pound, the euro and the Japanese yen, though for a time it also gained double digits against the Mexican peso.