Gold and silver rose sharply as projections pointed to Democratic wins in the U.S. midterm elections, while the dollar index fell. Both metals are down year-to-date, and one Capital.com analyst calls the recovery fragile.
Spot gold rose 2.64% to $4,031.98 an ounce by 3:37 a.m. ET, and spot silver jumped 4.17% to $51.8495 per ounce. The gains followed the U.S. midterm elections, with the Democrats projected to have won control of the House.
Front-month gold futures added 2.53% to $4,039.90, while silver futures rose 4.21% to $51.85. Platinum jumped 2.82% to $1,455.96, and palladium gained 3.8% to $969.33.
Dollar and yields slip as results come in
Other markets moved as the results arrived. U.S. stock futures broadly fell, Treasury yields moved lower, and the U.S. dollar index shed around 0.3%. Oil prices were marginally higher.
Rhona O'Connell, head of market analysis for EMEA and Asia at StoneX, said in a note that if the Democrats won dual Congressional control, gold should find support as rates and the dollar would likely come under pressure. She also pointed to a Fed leaning towards another hike, which she said would offset some of the support from lower yields and a softer dollar.
A rebound after a weak year
Both metals had record-breaking rallies in 2025, surging 66% and 135% respectively, as investors sought safe haven assets amid geopolitical uncertainty and broader market volatility.
This year has gone differently. Rising inflation, surging bond yields and hawkish central banks removed support from the metals, and gold is down more than 7% year-to-date, while silver has tumbled almost 28%.
Daniela Hathorn, senior market analyst at Capital.com, said the recovery remains fragile. According to Capital.com's note: "geopolitical uncertainty is not automatically translating into safe-haven demand". She added that metals also face the risk of liquidation during sharp equity selloffs.
Source: CNBC
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