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Gold prices fell on Monday as the dollar and stocks rallied, after federal investigators cleared Democrat Hillary Clinton of criminal charges related to her use of a private email server, just two days before the U.S. presidential election.

Still, traders should brace for the unexpected, Morganlander of Stifel said. The CBOE Volatility Index, the measure of market turbulence known as the VIX, climbed for a ninth day Friday, the longest streak since the data starts in 1990. The CBOE Gold ETF Volatility Index, which measures swings for bullion, reached the highest since July.

“Investors should put their seat belts on because there will be a tremendous amount of volatility, regardless of who gets elected,” Morganlander said.

"I think the news has just taken a bit of the heat out of that safe-haven buying for gold that emerged last week after Republican candidate Donald Trump gained in a lot of polls in the U.S.," ANZ analyst Daniel Hynes said. Gold prices are going to hover around $1,290-$1,300 for the next couple of days, analysts said.

"If Clinton wins there's going to be a further correction in prices and gold may even go down to $1,250. We say this because we see a strong correlation between gold prices and Trump's popularity in the polls," said Joshua Rotbart, managing partner at Hong Kong-based bullion services provider J. Rotbart & Co.

"The rate rise in December is largely already priced in. I wouldn't be surprised to see a knee-jerk move following a rate rise announcement but we think it will be brief," said Cameron Alexander, an analyst with Thomson Reuters-owned metals consultancy GFMS.

The gold net-long position jumped 14 percent to 172,532 futures and options contracts in the week ended Nov. 1, according to Commodity Futures Trading Commission data released three days later. It was the biggest gain since Sept. 27.

Reference: Reuters, Bloomberg