Gold gains 3% as dollar slides after Democrats sweep midterms
GLD•Spot gold rose 2.9% to $4,041.77 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 2.9% to $4,041.77 per ounce by 1050 GMT, after reaching its highest level since October 29. December US gold futures gained 2.8% to $4,051.70, and bullion was on track for its biggest daily gain since August 19.
2. Investors weigh rate outlook
A weaker dollar supported demand for dollar-denominated gold after Democrats swept the midterm elections. 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 82% chance of a December rate increase, while investors awaited Friday’s US non-farm payrolls report.
