Robin Kolvenbach, CEO of Argor-Heraeus, holds one-kilo silver and gold bars at the factory of refiner and bullion manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022.
Denis Balibouse | Reuters
Precious metals posted strong gains on Wednesday as the value of the dollar fell following the US midterm elections.
Spot gold was up 2.7% at $4,036.02 an ounce as of 10:02 a.m. ET, while silver stain jumped 4.7% to trade at $52.11 an ounce.
Spot gold price
First month gold futures added 2.7% to trade at $4,048.30, while silver futures were up 4.8% at $52.15.
Other metals posting notable gains on Wednesday included platinumwhich jumped 4.4% to trade at $1,478.35 and palladium, which rose 6.5% to $994.25.
The moves came as vote counting continued in the midterms, with Democrats expected to have taken control of the House and several governors’ offices also turning blue.
U.S. stocks jumped as political risk eased, while Treasury yields also fell. Oil prices have fallen, while US Dollar Index lost around 0.4%.
Rhona O’Connell, head of market analysis for EMEA and Asia at StoneX, said in a note on Tuesday that if Democrats gain dual control of Congress, gold should find support as rates and the dollar would likely come under pressure.
She said it would result in “fiscal brinkmanship and institutional friction, both leading to uncertainty,” adding that “the war in Iran and a weaker dollar would rival the impact of a hawkish Fed.”
“A reduction in fiscal stimulus argues for lower long-term yields and a weaker dollar, offset by debt-limit premiums on bonds and a Fed prone to further hikes,” she said.
US Dollar Index
Are gold prices getting back on track?
Gold and silver saw record rallies in 2025, rising 66% and 135% respectively over the year, as investors sought safe haven assets amid geopolitical uncertainty and broader market volatility.
But that momentum has been shattered this year, with rising inflation, rising bond yields and hawkish moves by central banks withdrawing support for metals. Gold is down more than 6% year to date, while silver is down about 26%.
Daniela Hathorn, senior market analyst at Capital.com, said in a note Tuesday that the recovery remains fragile.
“The challenge for precious metals is that geopolitical uncertainty does not automatically translate into demand for safe havens when investors are also concerned about tight monetary policy,” she said. “They also face the risk of liquidation during strong stock sell-offs, as investors sell profitable or liquid positions to raise cash.”
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