Gold gains 3% as dollar slides after Democratic midterm gains
GLD•Spot gold rose 3% to $4,046.91 per ounce as the dollar fell after Democrats swept the US midterm elections. Investors awaited Friday’s US payrolls report for signals on the Federal Reserve’s rate outlook.
1. Gold rises as dollar falls
Spot gold rose 3% to $4,046.91 per ounce by 0928 GMT, while US gold futures for December delivery gained 3% to $4,057.20. A weaker dollar supported demand for bullion by making it less expensive for buyers using other currencies.
2. Rates and payrolls in focus
Hamad Hussain of Capital Economics said concern about the fiscal outlook was supporting gold, but added that a likely hawkish Federal Reserve and weakness in technology stocks could limit further gains. Traders saw an 83% chance of a rate increase in December, and investors were awaiting Friday’s US non-farm payrolls report.
3. Other metals advance
Spot silver gained 4.4% to $51.99, platinum rose 3.2% to $1,461.58 and palladium climbed 5.6% to $985.64.
