Global gold prices (XAU/USD) touched the psychological level of US$4,100 per troy ounce during the Asian trading session on Thursday (November 5, 2026), extending a recovery that follows sharp downward pressure experienced in late October. This movement has captured market attention, signaling a resurgence in buying interest for the precious metal as investor sentiment shifts regarding the political and economic landscape in the United States.
Gold’s strength is bolstered by a weakening US dollar, which follows the Democratic Party's victory in the US midterm elections. This outcome has fueled expectations that the policies of President Donald Trump’s administration will face heightened scrutiny from Congress. Uncertainty surrounding the direction of US fiscal and economic policy has prompted investors to once again consider gold as a hedge.
Beyond political developments, a decline in global oil prices has also provided a positive tailwind for gold. Lower oil prices could potentially ease inflationary pressures, reducing the need for the Federal Reserve (the Fed) to maintain a more restrictive monetary policy. Nevertheless, the outlook for US interest rates remains clouded by a resilient labor market and inflation that has yet to be fully brought under control.
From a technical perspective, the US$4,100 mark serves as a critical psychological threshold for gold’s future price action. If the price can hold above this level, it may open the door for further gains toward the US$4,120–US$4,150 range. Conversely, a failure to sustain this momentum could trigger a correction toward the US$4,050–US$4,000 level. Market participants are now awaiting the US Non-Farm.