Global gold prices are on track for their largest weekly gain since August as of Friday (November 6, 2026), following U.S. midterm election results that triggered a weakening of the dollar and a decline in U.S. government bond yields. Spot gold rose 0.4% to US$4,098.84 per troy ounce during morning trading in Singapore, with the weekly gain projected to exceed 5%. Nevertheless, gold’s upward momentum has begun to stall as some investors sell off holdings to secure liquidity, aiming to cover losses in the stock market.
Market sentiment shifted sharply after the Democratic Party’s victory in the U.S. midterm elections, fueling concerns over potential tighter regulation of the artificial intelligence (AI) industry. U.S. technology stocks saw a significant decline on Thursday, driven by fears that the administration and Congress might impose stricter oversight on investments in data centers. The pressure in the stock market prompted investors to shift toward U.S. government bonds as a safe-haven asset, pushing Treasury yields to their lowest levels since early September. However, the U.S. dollar saw a brief uptick, which capped gold’s gains by making the precious metal more expensive for buyers using other currencies.
Gold also found support from growing hopes for an easing of the conflict between the U.S. and Iran, as the Democratic victory opens the door for a potential shift in Washington’s foreign policy. Market participants anticipate that a Democratic-controlled Congress may push for a resolution to the ongoing conflict—a conflict that has previously driven spikes in energy prices and intensified inflationary pressures. Furthermore, the potential for obstacles to President Donald Trump’s fiscal expansion agenda could limit the growth of government spending and national debt. Such conditions could help temper inflation and provide the Federal Reserve (The Fed) with room to adopt a more accommodative monetary policy, thereby enhancing the appeal of gold—an asset that does not generate interest. Although the outlook for gold continues to be supported by declining bond yields, investors remain cautious ahead of the U.S. Non-Farm Payrolls (NFP) report due on Friday. This employment data will serve as a key indicator of the strength of the U.S. economy and the future direction of the Federal Reserve’s interest rate policy. Previously, weekly U.S. jobless claims fell below all economist forecasts, signaling that the labor market remains resilient. Should the NFP report show strong job growth, expectations for a tighter monetary policy could rise, putting downward pressure on gold prices. Conversely, weaker data could bolster hopes for interest rate easing.
Newsmaker notes that gold’s gain of more than 5% over the week demonstrates that shifts in U.S. political sentiment are having a significant impact on global financial markets. Declining bond yields, concerns surrounding the technology sector, and growing expectations that inflationary pressures are easing have been the primary drivers behind the precious metal’s rally. Nevertheless, selling pressure—stemming from investors' liquidity needs—and the potential for a stronger U.S. dollar remain risks in the short term. If the NFP data points to a cooling labor market and increases the likelihood of the Federal Reserve easing policy, gold could extend its gains. On the other hand, an employment report that exceeds expectations could trigger profit-taking and cap gold’s price appreciation heading into the weekend.