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In this morning’s trading session, the price of gold on the world market rose by more than $4,100 per ounce. Photo: Reuters . |
After several days languishing below $4,000 per ounce, the price of gold surged to $4,135 per ounce in the most recent trading session. This is currently the highest price the precious metal has reached since the beginning of November.
The derivatives market also saw positive signs in the latest session, with December gold futures contracts on the COMEX exchange rising by more than $62 to $4,137 per ounce.
Other metals are also benefiting from gold’s price surge. Specifically, spot silver rose 4.9% to $52.23 per ounce; platinum increased 5.6% to $1,496.40 per ounce; and palladium gained 7.5% to $1,004 per ounce.
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World gold prices have reversed course and risen sharply. Chart: Kitco. |
Reuters noted that the Democratic Party’s overwhelming victory in the US midterm elections pushed the dollar to its lowest level in over a month, especially as investors weighed the possibility of stricter AI regulations and the potential negative impact on economic growth.
A weaker US dollar makes gold more attractive, as the precious metal, priced in this currency, becomes cheaper for overseas buyers. Currently, the USD-Index is pegged at 101.3 (-0.22%).
Jim Wyckoff, a market analyst at American Gold Exchange, said gold is being supported by a weakening US dollar. This development reflects the view that the US Congress is likely to become deadlocked in passing several bills, which could negatively impact the US economy and allow the Federal Reserve to pursue a more dovish monetary policy.
Notably, in this morning’s trading session, the crude oil market continued to witness a decline in key oil grades. According to updates on TradingEconomics, the global benchmark Brent crude and US WTI crude both fell by nearly 1% to $94 /barrel and $87.4 /barrel, respectively.
Even at the close of trading on November 4th, after US Vice President JD Vance suggested that the war with Iran was the reason for the Republican Party’s defeat in the midterm elections, WTI oil prices had already fallen sharply by 8.3%, closing at $88.12 per barrel. Brent crude, meanwhile, lost 8.7% of its value, plummeting to $94.62 for barrel.
Contrary to trends in the metals and crude oil markets, US stocks surged on November 4th (US time), as the overwhelming victory of the Democratic Party in the US midterm elections, along with President Donald Trump’s acceptance of the results, helped eliminate the risk of political instability weighing on Wall Street.
The Dow Jones index rose 1,569.40 points (+3.03%) to 53,356.12 at the close of trading. This 30-stock index surpassed the 53,000 mark for the first time since September 8th, and also recorded its strongest single-day gain since April 9th, 2025, the date when President Trump announced a 90-day moratorium on retaliatory tariffs against at least several countries.
The S&P 500 index rose 1.58%, to 7,688.62 points, while the Nasdaq Composite gained 1.44%, to 25,736.51 points.
In the midterm elections, the Democratic Party won a majority of seats in both the US House and Senate, and also won key gubernatorial races, including in Texas. Experts believe the Democratic Party will become a force to restrain Trump’s policies. Recently, the president has repeatedly implemented tax cuts beneficial to businesses, while pursuing tariffs and a trade war with Iran, leading to increased inflation.