Gold jumps more than 2% on Democrats’ U.S. midterm win, topping $4,000 an ounce

[Financial News] The dollar weakened on news that Democrats had swept both chambers in the U.S. midterm elections, sending international gold prices up more than 2% and past the $4,000-an-ounce mark.
On the 4th (local time), spot gold was trading at $4,021.68 an ounce as of 07:18 GMT, up 2.4% from the previous trading day. Gold futures for December delivery on COMEX also traded at $4,031.20 an ounce, up 2.3%.
The latest rise in gold prices was driven by a weaker dollar and falling Treasury yields following the U.S. midterm election results. Kyle Rodda, chief financial market analyst at Capital.com, said, “Expectations that U.S. government spending will decline have spread amid political gridlock between the executive and legislative branches, pushing Treasury yields and the dollar lower. This has been positive for the gold market.”
Global stock markets weakened as Democrats scored a landslide victory, and the dollar index fell to its lowest level in a month. Markets voiced concern that Democrats’ complete control of Congress could disrupt the expansion of data centers, which have fueled the artificial intelligence (AI) boom, and curb spending in the technology sector.
When the dollar falls in value, gold—an asset priced in dollars—tends to become less costly for overseas investors who use other currencies, boosting demand.
Chris Weston, research director at Pepperstone, said, “Protective demand from investors seeking to hedge against the risks of the Trump administration’s unpredictable and confrontational governance in the future is giving gold buyers a strong rationale for buying.”
Geopolitical risks also fueled demand for safe-haven assets. A senior Iranian official said that talks to end the war between Iran and the United States continued to face difficulties. U.S. President Donald Trump has also not ruled out resuming U.S. military combat operations after the election.
Investors are watching the U.S. October nonfarm payrolls report, due on the 6th, for clues about the Federal Reserve System’s future monetary policy direction.
Meanwhile, the World Gold Council (WGC) forecast that India’s gold demand would fall to a six-year low in 2026 as high prices weigh on jewelry sales and investment demand eases.
Other precious metals also rose across the board. Spot silver jumped 4% to $51.74 an ounce, platinum rose 2.5% to $1,451.95, and palladium gained 4.2% to $972.74 at the close.

[email protected] Yoon Jae-joon Reporter