New York, (IANS) : Gold futures on the COMEX division of the New York Mercantile Exchange dropped on Tuesday, as investors largely waited on the sidelines ahead of the results of the US presidential election.

The most active gold contract for December delivery fell $4.9, or 0.38 per cent, to settle at 1,274.50 dollars per ounce, Xinhua news agency reported.

The metal dropped nearly 2 per cent in its previous session after the Federal Bureau of Investigation (FBI) said no criminal charges were warranted against Democratic candidate Hillary Clinton for using a private email server.

Investors were largely expecting a victory for Clinton and noted that a market shock — similar to the gains the day after the UK voted to leave the European Union (EU) — was expected if Republican nominee Donald Trump takes the White House.

In the day following the British vote to leave the EU, gold prices rallied more than 6 per cent as investors bought up so-called safe haven assets, including the dollar and the Chinese yen.

Markets also remained cautious of the implications of the US election outcome on an anticipated interest rate hike by the Federal Reserve next month.

The double uncertainty over the election and the possible US interest rate hike have boosted demand for gold and silver in the US, dealers said.

Silver for December delivery rose 20.5 cents, or 1.13 per cent, to close at $18.356 per ounce.

Platinum for January 2017 delivery added $7.2, or 0.72 per cent, to close at $1,001.40 per ounce.