Gold Jumps 3.4% to Reclaim $4,000 an Ounce as Dollar Slides
Summary
- International gold prices reclaimed the $4,000-an-ounce level as the dollar weakened and uncertainty deepened after Democrats took control of both chambers of Congress.
- Spot gold and December gold futures each rose 3.4%, while other precious metals including spot silver, platinum, and palladium also advanced.
- Markets are focused on the possibility of a more accommodative Federal Reserve stance under the congressional power balance, as well as a December interest-rate hike and the upcoming U.S. nonfarm payrolls report.
Forecast Trend Report by Period
Gold climbed back above $4,000 an ounce as dollar weakness after the U.S. midterm elections lifted demand. Other precious metals also advanced as Democratic control of both chambers of Congress added to uncertainty over U.S. policy and the economic outlook.
Reuters reported on November 4 that spot gold was trading at $4,059.95 an ounce as of 2:04 p.m. Eastern time, up 3.4% from the previous session. It was on track for its biggest daily gain since mid-August. December gold futures settled 3.4% higher at $4,073 an ounce.
Spot gold had fallen to $3,869.85 on October 30, its lowest since October 2025, before rebounding as the dollar dropped to its weakest level in more than a month. Because gold is priced in dollars, a weaker U.S. currency makes it cheaper for buyers using other currencies.
The buying spread to other precious metals. Spot silver rose 4.9% to $52.23 an ounce, platinum gained 5.6% to $1,496.40, and palladium surged 7.5% to $1,004.
Markets were also focused on the implications for the economy and monetary policy of a political split in which Democrats control Congress and Republicans hold the White House. Jim Wyckoff, a market analyst at American Gold Exchange, said legislative gridlock could weigh on the economy, potentially giving the Federal Reserve more room to adopt a more accommodative stance.
For now, rate expectations still favor another increase. CME FedWatch showed traders were pricing in an 83% chance of a rate hike in December at the time of the report. Higher rates tend to weigh on gold because they increase the opportunity cost of holding a non-yielding asset.
Investors are now watching the U.S. nonfarm payrolls report due on November 6. Daniel Ghali, head of metals research at Deutsche Bank, said a strong employment reading could reinforce expectations for further rate increases. He added that the labor market is not the main factor shaping the current inflation outlook, limiting the chances that jobs data alone would materially lift expectations for the terminal rate.
