Gold jumps more than 2% on softer dollar after Democratic midterm sweep
GLD•Spot gold rose 2.4% to $4,021.68 an ounce as the dollar hit a one-month low after Democrats won control of both chambers of Congress. Investors awaited US non-farm payrolls data due Friday.
1. Gold gains on dollar weakness
Spot gold climbed 2.4% to $4,021.68 per ounce by 0718 GMT, while US gold futures for December delivery rose 2.3% to $4,031.20. A weaker dollar made bullion priced in the US currency more affordable for overseas buyers.
2. Elections and market outlook
Analysts said falling yields and the dollar supported gold after Democrats secured control of the Senate and House. Kyle Rodda of Capital.com said investors viewed potential political gridlock as a factor that could slow US spending. Chris Weston of Pepperstone said demand for protection against a potentially more unpredictable and confrontational Trump administration also supported gold.
3. Payrolls and other metals
Markets awaited the US non-farm payrolls report due Friday for clues to the Federal Reserve's policy path. Spot silver gained 4% to $51.74, platinum rose 2.5% to $1,451.95 and palladium climbed 4.2% to $972.74.
