LONDON, Nov 5 (Reuters) - Oil, gold and industrial metals fell on Wednesday, reversing strong gains, as Barack Obama's U.S. presidential win pushed up the dollar after it posted its biggest one-day slide in 13 years in the previous session.
The dollar rose against a basket of currencies .DXY after Democrat Obama captured the White House, defeating Republican John McCain to become the first black U.S. president.
"We are seeing prices falling on the back of a firmer U.S. dollar and some weakness in equity markets," said analyst Eugen Weinberg at Commerzbank.
European share prices were down as investors turned their attention back to the economy after Obama's victory, with pharmaceutical and commodities stocks the main drags on the index.
By 1247 GMT, the FTSEurofirst 300 index of leading European shares was down 2 percent at 954.61, breaking six straight days of gains. [.EU]
"Investors are again reducing risk, Obama is not going to change the mood of consumers," Weinberg said.
A more than 10 percent surge in oil in the previous session, due to lower exports by OPEC nations, and a 5 percent rally in gold, also gave investors reason to take profit.
"Yesterday, it was buy the rumour and sell the fact ... the expectations for Obama and some clarity in U.S. policy helped most markets higher," Weinberg said.
U.S. light sweet crude for December delivery CLc1 eased $1.63 or 2.3 percent to $68.89 a barrel. It settled at $70.53 a barrel on Tuesday, the largest one-day gain since Sept. 22, when it soared nearly 16 percent.
"It was some short-covering ... and there were rumours about Saudi Arabia implementing some production cuts," Weinberg said.
Oil's surge on Tuesday came on signs OPEC kingpin Saudi Arabia and other OPEC members had made cuts in crude exports.
The Reuters-Jefferies CRB index .CRB, which tracks 19 commodity futures, rose more than 5 percent on Tuesday.
DEMAND WORRIES RULE
Gold was trading at $760.45 an ounce, down from $763.20 in late New York deals. It hit an intraday low $748.75, down 1.9 percent, as the dollar firmed and traders weighed up the prospect of a euro zone rate cut.
The European Central Bank is expected to cut interest rates by 50 basis points at a meeting on Thursday. [ID:nT349997] As gold had failed to break resistance at $776 an ounce, the precious metal was likely to remain subdued, analyst Pradeep Unni at Richcomm Global Services said in a research report.
"Intermittent rallies are unlikely to result in large gains as swift profit taking might emerge," the report said.
Gold would have to revisit $680 to gain momentum, Unni said.
London Metal Exchange copper MCU3 fell 8.7 percent to a low of $3,970 a tonne, before trading at $4,085. It was down from a close of $4,350 on Tuesday, when it rallied more than 8 percent.
On Wednesday, copper stocks rose by 5,825 tonnes to 247,475.
"Copper stocks came in higher. Overall the picture is cautious and the stronger dollar does not help," said analyst Michael Widmer at BNP Paribas. "On the demand side it is not very bullish at the moment."
Chicago Board of Trade corn for delivery in December CZ8 bucked the falling trend, rising 0.5 percent to $4.15 per bushel while November soybeans SX8 lost 0.2 percent to $9.47 per bushel.
Coffee and sugar futures fell as the dollar rose, while cocoa rose on a weaker pound on expectations of a sharp cut in interest rates by the Bank of England on Thursday.
A softer pound makes it easier to buy sterling-denominated London futures with other currencies.
London benchmark January robusta coffee LKDF9 was down $27, or 1.5 percent, at $1,750 per tonne.
London December LSUZ8 white sugar was down $1.0, or 0.3 percent, to $350.00 per tonne in tiny volume of 332 lots. (Additional reporting by Sambit Mohanty in Singapore, editing by Karen Foster)
