Gold Rises Above $4,000 as Dollar Falls After Midterm Sweep

Gold climbed back above 4,000 dollars an ounce on Wednesday, as the dollar weakened after Democrats won control of both chambers of the U.S. Congress in the midterm elections. Spot gold was up 2.4 percent at 4,021.68 dollars an ounce at 0718 GMT, Reuters market data showed. That followed an earlier reading of 4,016.01 dollars at 0619 GMT, up 2.2 percent on the day, with U.S. gold futures for December delivery also up 2.2 percent at 4,026.90 dollars, Reuters reported.

Silver moved faster. It gained 4 percent to 51.74 dollars an ounce in the same morning trade, according to the Reuters figures carried in market reports. The dollar fell to a one-month low, and Treasury yields moved lower as bond prices rose, as traders weighed what a Democratic Congress means for taxes, spending and oversight of the technology sector.

A level traders were watching

The move through 4,000 dollars matters because the level had become the line both sides were watching. Matt Simpson, a senior market analyst at StoneX, told Reuters that 4,000 dollars is the obvious resistance level, and that a break on either side of that range could dictate gold's next decent move. Wednesday's trade put the price on the upper side of that line for now, after a fall that had taken gold to a one-year low at the end of October.

Why the election moved gold

Gold usually rises when the dollar falls, because the metal is priced in dollars and becomes cheaper for buyers holding other currencies. It also draws buyers when political risk rises. The midterm result gives President Donald Trump a Congress run by the other party for his final two years, with committee chairs and subpoena power changing hands. Markets now wait for the U.S. nonfarm payrolls report due on Friday for the next clue on the Federal Reserve's policy path, Reuters reported.

Demand at home and abroad is not all moving one way. India's gold demand is expected to fall to a six-year low in 2026, as high prices weigh on jewellery sales and investment demand slows, the World Gold Council said on Tuesday, in figures reported by Reuters. That is the counterweight to Wednesday's jump: the price is being set by currency and politics, while physical buyers in the largest consumer market are pulling back at these levels.

Key numbers

Spot gold: 4,021.68 dollars an ounce at 0718 GMT, up 2.4 percent. December futures: 4,026.90 dollars, up 2.2 percent. Silver: 51.74 dollars an ounce, up 4 percent. This is market data, not financial advice. Prices move through the day, and Orbit Post's MarketPulse pages carry the delayed data feed with its own charts and disclaimer.