Gold hits a two-week high as dollar, Treasury yields ease after US midterm elections
Published Thu, Nov 5, 2026 · 12:18 PM
GOLD prices climbed nearly 2 per cent to a two-week high on Thursday (Nov 5), supported by a weaker US dollar and lower US Treasury yields in the wake of a Democratic midterm election wave.
Spot gold rose 1.9 per cent to US$4,134.83 per ounce by 0316 GMT, hitting its highest since Oct 22. Bullion climbed about 3.4 per cent on Wednesday, its biggest daily gain since Aug 19.
US gold futures for December delivery climbed 1.8 per cent to US$4,144.20.
A weaker dollar and lower Treasury yields have helped gold recover above the key US$4,000 level, though holding above that threshold remains crucial for the recovery outlook, said Linh Tran, market analyst at XS.com.
“If investment flows and yield movements continue to provide support, gold could stabilise above US$4,000, also opening up an opportunity for a recovery toward US$4,200, followed by US$4,400,” Tran added.
The dollar edged lower on Thursday in the aftermath of an overwhelming victory by Democrats in US midterm elections that cleared a major source of uncertainty and fuelled a rally in global equities.
A weaker dollar makes greenback-priced bullion more affordable for holders of other currencies.
The yield on benchmark 10-year US Treasuries was down 6 basis points overnight and by a further basis point in early Tokyo trade to 4.87 per cent.
Market participants now await the US nonfarm payrolls report on Friday to further gauge the Federal Reserve’s monetary policy outlook.
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Traders currently see an 82 per cent chance that the Fed will raise rates in December, according to CME’s FedWatch tool.
Higher interest rates increase the opportunity cost of holding non-yielding bullion, reducing its appeal to investors.
Meanwhile, Citi has a 0-3 month price target of US$4,500 per ounce for gold, it said on Wednesday, as it sees substantial upside potential if the Strait of Hormuz reopens and the Yemen/Saudi conflict de-escalates by the year-end, as it expects.
Among other metals, spot silver rose 1.7 per cent to US$53.12 per ounce, platinum gained 2.1 per cent to US$1,527.65 and palladium climbed 2.6 per cent to US$1,030.14. REUTERS
