Spot gold rose 3.4% to $4,059.95 an ounce, on track for its biggest daily gain since mid-August, as the dollar fell to a more than one-month low after Democrats won control of Congress. Investors awaited Friday’s U.S. nonfarm payrolls report for clues on the interest rate outlook.
Spot gold rose 3.4% to $4,059.95 an ounce by 2:04 p.m. EST, while December U.S. gold futures settled 3.4% higher at $4,073. Spot gold reclaimed $4,000 after falling to $3,869.85 on October 30, its lowest level since October 2025.
The dollar fell to a more than one-month low after Democrats won control of both the Senate and House in the U.S. midterm elections. A weaker dollar makes dollar-priced gold less expensive for overseas buyers. Jim Wyckoff of American Gold Exchange said investors viewed a likely congressional deadlock as potentially negative for the U.S. economy, which could allow the Federal Reserve to move toward easier monetary policy.
Investors awaited Friday’s U.S. nonfarm payrolls report for clues on the monetary policy outlook, after Wednesday’s ADP report showed private payrolls growth increased in October. Traders saw about an 83% chance of a Fed rate increase in December. Higher rates increase the opportunity cost of holding non-yielding gold.
