* Stock markets, dollar little changed
* SPDR holdings fell on Monday (Updates prices)By Sumita LayekBENGALURU, Nov 6 (Reuters) - Gold edged up on Tuesday asinvestors sought shelter fromuncertainty over the outcome ofthe U.S. midterm elections.
Spot gold rose 0.3 percent to $1,234.94 per ounce asof 1314 GMT, while U.S. gold futures were up 0.4 percentat $1,236.50."One scenario (from the elections) is that both houses areretained by the Republicans, and this could be negative forgold," said Hussein Sayed, chief market strategist at FXTM."The opposite scenario could send equity markets much lower,boosting gold. Such uncertainty is keeping gold steady at themoment."Opinion polls and election forecasters favour Democrats tosecure the minimum 23 seats they need to capture a majority inthe U.S. House of Representatives, which would enable them tostymie President Donald Trump's legislative agenda andinvestigate his administration. European shares sagged and the dollar and bond marketsbarely budged on Tuesday, as traders braced for midtermelections in the United States and potentially lively sessionsahead."Gold is holding above $1,230, confirming the growinginvestor interest in bullion in this uncertain macro scenario,"
ActivTrades chief analyst Carlo Alberto De Casa said in a note.Investors also awaited a two-day Federal Reserve meetingstarting on Wednesday to gauge the outlook for U.S. monetarypolicy, analysts said.Higher U.S. interest rates tend to boost the dollar, makingdollar-priced gold more expensive for holders of othercurrencies. Rate increases also pressure gold prices byincreasing the opportunity cost of holding non-yielding bullion.Meanwhile, holdings of the world's largest gold-backedexchange-traded fund, SPDR Gold Trust , fell 0.23 percentto 757.29 tonnes on Monday. Among other precious metals, silver rose 0.3 percentto $14.68 per ounce while palladium was little changed at$1,132.70.Platinum gained 0.6 percent to $869.24 per ounce,having touched its highest since June 25 at $874.60 earlier inthe session. (Reporting by Sumita LayekEditing by Dale Hudson)