Global gold prices saw a sharp surge during trading on Wednesday (November 4, 2026), following a Democratic Party victory in the United States (US) midterm elections, which triggered a weakening of the US dollar and a decline in US government bond yields.
Spot gold (XAU/USD) climbed 3.4% to US$4,061.30 per troy ounce, while gold futures rose by a similar margin, closing at US$4,073 per troy ounce. Silver also saw gains, jumping 5.1% to US$52.29 per troy ounce. Meanwhile, the US Dollar Index (DXY) weakened by approximately 0.3%, reflecting investor reaction to the shifting balance of political power in Washington.
The US midterm election results indicate that the Democratic Party has secured a majority in both chambers of Congress, fueling expectations that certain fiscal agendas of President Donald Trump’s administration may face constraints. Market participants anticipate that this shift could slow the expansion of government spending and reduce pressure on sovereign debt issuance.
These expectations contributed to a decline in US Treasury yields, thereby enhancing the appeal of gold—an asset that does not generate interest. Concurrently, US stock markets rallied as uncertainty surrounding the election outcome dissipated, while global oil prices softened amid shifting geopolitical sentiment. The combination of a weaker dollar and lower yields served as the primary catalysts for the recovery in precious metal prices.
Nevertheless, the future trajectory of gold remains subject to uncertainty regarding the Federal Reserve’s monetary policy. Rhona O'Connell, Head of Market Analysis for EMEA and Asia at StoneX, noted that the change in control of Congress could increase fiscal uncertainty and complicate the relationship between the executive branch and the legislative body. On the other hand, the potential for limits on fiscal stimulus could exert downward pressure on bond yields and the US dollar, thereby providing support for gold. However, the risk of conflict involving Iran and expectations of a Federal Reserve interest rate hike in December remain factors that could cap the gains of the precious metal. Investors are now closely monitoring developments in US fiscal policy, movements in the dollar, and upcoming economic data to gauge the sustainability of the gold rally.
Source: Newsmaker.id