Gold hits a two-week high as dollar, Treasury yields ease after US midterm elections
GLD•Spot gold rose 1.9% to $4,134.83 an ounce, its highest since October 22, as the dollar weakened and Treasury yields fell. Traders priced in an 82% chance of a Federal Reserve rate hike in December.
1. Gold climbs
Spot gold rose 1.9% to $4,134.83 per ounce, reaching a two-week high. Bullion gained about 3.4% on Wednesday, its biggest daily rise since August 19, while US gold futures added 1.8% to $4,144.20.
2. Dollar and yields ease
A weaker dollar and lower Treasury yields supported gold after the US midterm elections. The 10-year Treasury yield fell 6 basis points overnight and another basis point in early Tokyo trading, to 4.87%. Traders awaited Friday’s US nonfarm payrolls report; markets priced in an 82% chance of a December Fed rate increase.
3. Price outlook
Market analyst Linh Tran said continued support from investment flows and yields could help gold stabilise above $4,000, with potential recovery levels of $4,200 and $4,400. Citi gave gold a 0–3 month price target of $4,500, citing possible upside if the Strait of Hormuz reopens and the Yemen-Saudi conflict de-escalates by year-end.
