2026.11.0406:58:19UTC+00Gold Rises as Dollar Falls on Midterm Results

Gold prices surged more than 2% on Wednesday, reclaiming the $4,000-per-ounce level, buoyed by a weaker US dollar and declining Treasury yields after Democrats scored key wins in the US midterm elections. Markets interpreted the outcome as increasing the likelihood of political gridlock in Washington, potentially curbing prospects for additional fiscal expansion.

The dollar slipped to a four-week low, while Treasury yields fell across the curve, enhancing the appeal of non-yielding bullion. At the same time, persistent uncertainty over US-Iran negotiations continued to cloud the geopolitical landscape, with Washington and Tehran still seen as far from reaching an agreement to end their conflict.

Investors also shifted focus to Friday’s US nonfarm payrolls report for further guidance on the Federal Reserve’s policy path. According to CME’s FedWatch Tool, markets are currently pricing in a 79% probability of a Fed rate hike in December.