Gold gains 3% as dollar slides after Democratic midterm gains
GLD•GLD•GLD•GLD•Gold climbed 3% to $4,046.74 an ounce as the dollar slid after Democrats won the US midterm elections. Investors awaited Friday’s US payrolls report for signals on the Federal Reserve’s rate outlook.
Spot gold rose 3% to $4,046.74 per ounce by 1234 GMT, after reaching $4,050.99, its highest level since October 29. US gold futures for December delivery gained 2.9% to $4,054.60 per ounce.
The dollar hit a one-month low after Democrats secured control of both the Senate and House. Hamad Hussain of Capital Economics said the election appeared to boost gold as investors became more concerned about the fiscal outlook. He said a hawkish Federal Reserve and continued weakness in technology stocks could limit further gains.
Traders saw an 82% chance of a Federal Reserve rate increase in December, and Friday’s non-farm payrolls report could offer further clues on the central bank’s path. Silver rose 4.8% to $52.13 per ounce, platinum gained 3.6% to $1,467.60 and palladium climbed 6.5% to $995.06.
