Gold rose about 3% on Wednesday, on track for its biggest daily gain since mid-August, as the dollar fell after Democrats won control of both chambers of Congress. Spot gold reclaimed $4,000 an ounce, reaching $4,040.15, while investors awaited Friday’s US payrolls report.
Spot gold was up 2.9% at $4,040.15 an ounce by 10:45 a.m. EST, while US gold futures for December delivery rose 2.8% to $4,049.00. Spot gold reclaimed the $4,000 level after falling to $3,869.85 on October 30, its lowest since October 2025. The dollar fell to a more than one-month low after Democrats won control of both the Senate and House.
A weaker dollar made dollar-priced gold less expensive for overseas buyers. Jim Wyckoff of American Gold Exchange said gold drew support from views that a likely congressional deadlock could weigh on the US economy and allow the Federal Reserve to move toward easier monetary policy. Traders saw about an 83% chance of a December rate hike, while investors awaited Friday’s nonfarm payrolls report for further clues on the policy outlook.
US private payrolls grew in October, according to the ADP National Employment Report. Daniel Ghali of Deutsche Bank said a strong nonfarm payrolls reading could corroborate market expectations for Fed hikes, but was unlikely to raise terminal-rate expectations. Spot silver gained 4.2% to $51.88, platinum rose 4.2% to $1,475.98, and palladium climbed 7.1% to $999.50.
