Gold and silver rose sharply as investors assessed the U.S. midterm election results, while the dollar weakened. Spot gold was up 2% at $4,005.40 an ounce by 1:30 a.m. ET, and spot silver gained 4% to $51.68. Gold futures rose 2.2% to $4,020.60, while silver futures added 3.8% to $51.53.
Other precious metals also advanced. Platinum gained 3.3% to $1,462.20, and palladium rose 3.8% to $969.33. The moves came as vote counting continued, with Democrats projected to take control of the House and win several governors’ offices.
U.S. stock futures broadly fell as results came in, and Treasury yields moved lower. Oil prices edged up, while the U.S. dollar index lost about 0.3%.
Rhona O’Connell, StoneX’s head of market analysis for EMEA and Asia, said in a Tuesday note that gold could find support if Democrats secured control of both chambers of Congress, as interest rates and the dollar would likely face pressure. She cited potential fiscal brinkmanship and institutional friction as sources of uncertainty, while noting that a weaker dollar and the Iran war could contend with the effects of a hawkish Federal Reserve.
Gold and silver recorded major rallies in 2025, rising 66% and 135%, respectively. This year, however, higher inflation, rising bond yields and hawkish central banks have weighed on the metals. Gold is down more than 7% year to date, while silver has fallen almost 28%.
Daniela Hathorn, a senior market analyst at Capital.com, said the recovery remained fragile. She noted that geopolitical uncertainty does not necessarily create safe-haven demand when investors are also concerned about restrictive monetary policy, and that metals can face selling pressure when investors raise cash during sharp stock-market declines.
Sources: CNBC Markets.