Global gold prices maintained a sharp rally during Thursday’s trading (November 5, 2026), following their largest daily surge since August. Spot gold rose 0.2% to US$4,070.10 per troy ounce, building on a 3.3% gain from the previous session. This upward momentum was driven by a weakening US dollar and a decline in US government bond yields, following the Democratic Party’s success in securing control of both chambers of Congress in the midterm elections. The shift in the political landscape in Washington has heightened uncertainty regarding the economic policy direction of President Donald Trump’s administration, thereby bolstering demand for gold.
The Democratic Party’s victory in both the House of Representatives and the Senate has prompted investors to recalibrate their expectations for US fiscal policy. The market anticipates that the change in the composition of Congress could constrain parts of the Trump administration’s agenda, including planned tax cuts and increased government spending. This has contributed to a decline in US Treasury yields across various maturities, while the Bloomberg Dollar Index fell by 0.4%—its largest daily drop in two months. Lower bond yields enhance the appeal of gold, as the precious metal does not generate interest, while a weaker dollar makes gold more affordable for investors using other currencies.
Further support for gold has come from a decline in global oil prices, following President Trump’s efforts to ease concerns regarding potential further military strikes against Iran. On Wednesday, Brent crude fell below the US$100-per-barrel mark for the first time since early October. A drop in energy prices has the potential to alleviate global inflationary pressures while simultaneously easing concerns surrounding high-interest-rate policies. Nevertheless, gold’s recovery remains underway despite long-term pressure, following a decline of more than 20% since the onset of the US-Iran conflict in late February—a downturn driven by surging energy costs and the tightening of monetary policy.
Investor attention has now shifted toward the United States employment report, or Non-Farm Payrolls (NFP), scheduled for release on Friday (November 6, 2026). This data will serve as a key indicator for assessing the strength of the labor market and the future direction of the Federal Reserve’s (The Fed) interest rate policy. Should job growth show signs of slowing and inflationary pressures become more contained, the Federal Reserve may have greater scope to loosen its monetary policy—a scenario that could provide additional support for gold. Meanwhile, other precious metals have also strengthened; silver rose 0.3% to US$52.36 per troy ounce, following a nearly 5% surge in the previous trading session.
Solidnews notes that gold’s ability to hold above the US$4,000 mark signals growing recovery momentum after months of intense downward pressure. A weaker dollar, declining bond yields, and easing inflation risks—aided by falling oil prices—have collectively bolstered the precious metal. If the US employment data points to weakness and expectations for further Fed rate hikes diminish, gold could potentially extend its gains toward higher levels. Conversely, should the NFP report reflect a robust US economy, fueling a recovery in the dollar and bond yields, gold prices could be at risk of a correction. Ultimately, the sustainability of gold’s upward trend will depend heavily on developments in US economic fundamentals and the market’s reaction to the Federal Reserve’s subsequent monetary policy decisions.