Spot gold climbed to a two-week high as the dollar and Treasury yields eased following Democratic gains in the US midterm elections.
MoneyTurkey Commodities Desk | 5 November 2026
Key points
- Spot gold rose 1.9% to $4,134.83 an ounce by 03:16 GMT, its highest since 22 October; December futures were up 1.8% at $4,144.20.
- The dollar slid to its lowest in more than a month, and the 10-year Treasury yield was at 4.87% after falling overnight.
Gold prices climbed nearly 2% to a two-week high on Thursday, supported by a weaker dollar and lower Treasury yields after Democratic gains in the US midterm elections. Spot gold rose 1.9% to $4,134.83 an ounce by 03:16 GMT, its highest since 22 October. December gold futures were up 1.8% at $4,144.20. Bullion had already jumped 3.4% on Wednesday, its biggest daily gain since 19 August.
What happened
Spot gold touched $4,146.63 an ounce earlier in the session, its highest level since 20 October. The metal held above $4,000 after the election results cleared a major source of uncertainty and fueled a rally in global equities.
The dollar edged lower on Thursday after the Democratic midterm wave. The yield on benchmark 10-year US Treasuries was down 6 basis points overnight and by a further basis point in early Tokyo trade to 4.87%. A weaker dollar makes greenback-priced bullion more affordable for holders of other currencies.
What is driving prices
Oil edged higher on Thursday after falling for four straight sessions on expectations that Republican losses could reduce the risk of further escalation of the US-Israeli war with Iran. That slide in energy prices had eased some inflation pressure in the rates market, supporting non-yielding bullion even as traders still price a high chance of further Fed tightening.
Market participants now await the US nonfarm payrolls report on Friday for another read on the Federal Reserve’s path. Traders currently see an 82% chance that the Fed will raise rates in December, according to CME’s FedWatch tool. Higher interest rates raise the opportunity cost of holding non-yielding bullion.
Citi has a zero- to three-month target of $4,500 an ounce for gold, the brokerage said on Wednesday, citing upside if the Strait of Hormuz reopens and the Yemen conflict de-escalates by year-end. Among other metals, spot silver rose 1.7% to $53.12 an ounce, platinum gained 2.1% to $1,527.65 and palladium climbed 2.6% to $1,030.14.
Why it matters
A weaker dollar and lower Treasury yields have helped gold recover above $4,000, though holding that level remains crucial for the recovery outlook, said Linh Tran, a market analyst at XS.com. If investment flows and yield moves keep supporting the metal, gold could stabilise above $4,000 and open a path toward $4,200, then $4,400.
China’s crackdown has pushed wealthy investors toward gold, lifting Hong Kong jewelry sales, according to Bloomberg — another demand channel as investors hedge global uncertainty.
What to watch
- US nonfarm payrolls on Friday for Fed policy signals
- CME FedWatch pricing for a December rate hike (82% at the snapshot)
- Citi’s $4,500 zero- to three-month gold target if Hormuz and Yemen risks ease
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For information only. Not investment advice.
