Gold miners shine after Democrats sweep US midterms
XLB•Gold miners rose as spot gold climbed 2.7% to $4,034.53 an ounce after Democrats took control of both chambers of Congress, while the dollar fell to a more than one-month low.
1. Miners advance
Barrick Mining and Newmont jumped 5% and 6%, respectively. Royal Gold rose 4.2%, AngloGold Ashanti gained 5.6%, Kinross Gold climbed 5.6% and Agnico Eagle Mines advanced 6.2%.
2. Gold gets a lift
The election result sent the dollar to a more than one-month low. XM senior market analyst Charalampos Pissouros said the dollar’s retreat, lower Treasury yields, reduced expectations for Federal Reserve rate hikes and Wall Street risk aversion increased gold’s appeal. Spot gold was down 6.6% so far this year.
