Gold Surges as Dollar Slumps on US Election Results
Gold climbed around 2.6% to $4,035 an ounce on Wednesday, putting it on track for its biggest daily gain since mid-August, as the US dollar tumbled following a sweeping Democratic victory in the midterm elections. Investors also looked ahead to this week’s US nonfarm payrolls report for further guidance on the policy outlook, following the Federal Reserve’s decision to leave interest rates unchanged in October. The Democratic victory, which secured control of both chambers of Congress, sent the dollar to a more than one-month low as investors assessed the potential impact of tighter AI regulation on economic growth. Meanwhile, inflationary concerns persisted and oil prices remained elevated as markets awaited Washington’s next move in the US-Israeli war on Iran. Traders currently see a 79% probability of a Federal Reserve rate hike in December, according to the CME FedWatch Tool.
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Gold climbed around 2.6% to $4,035 an ounce on Wednesday, putting it on track for its biggest daily gain since mid-August, as the US dollar tumbled following a sweeping Democratic victory in the midterm elections. Investors also looked ahead to this week’s US nonfarm payrolls report for further guidance on the policy outlook, following the Federal Reserve’s decision to leave interest rates unchanged in October. The Democratic victory, which secured control of both chambers of Congress, sent the dollar to a more than one-month low as investors assessed the potential impact of tighter AI regulation on economic growth.
Meanwhile, inflationary concerns persisted and oil prices remained elevated as markets awaited Washington’s next move in the US-Israeli war on Iran. Traders currently see a 79% probability of a Federal Reserve rate hike in December, according to the CME FedWatch Tool.