Bullion reached near-record territory, touching an intraday high of $4,050.99 per ounce to track its biggest daily advance since mid-August. The rally was mirrored in other precious metals, with silver, platinum, and palladium all posting sharp increases alongside gold futures. Still, market analysts caution that upside momentum may face resistance due to an 82% probability of a Federal Reserve rate hike in December. Investors are now watching upcoming U.S. non-farm payrolls data and unresolved geopolitical tensions involving Iran for further market cues.
Key points
A weakening dollar has improved affordability for foreign buyers, driving broad-based ral…: A weakening dollar has improved affordability for foreign buyers, driving broad-based rallies across the precious metals complex.
Investors are weighing economic risks tied to potential federal artificial intelligence r…: Investors are weighing economic risks tied to potential federal artificial intelligence regulations alongside broader fiscal policy uncertainty.
Hawkish Federal Reserve interest rate expectations and persistent geopolitical tensions r…: Hawkish Federal Reserve interest rate expectations and persistent geopolitical tensions remain critical factors steering future bullion price movements.
Sources checked by our analysis pipeline: 1
Spot gold rose to $4,046.74 per ounce by 1234 GMT and was on track to log its biggest daily gain since August 19. Earlier in the session, it hit $4,050.99, its highest level since October 29.
US gold futures for December delivery were up 2.9% to $4,054.60 per ounce.
Democrats seized control of both the Senate and House, scoring wins in Republican strongholds for the first time in generations as tens of millions of voters delivered a scathing rebuke to President Donald Trump.
"The elections appear to have boosted gold prices as investors become more worried about the fiscal outlook," said Hamad Hussain, senior climate and commodities economist at Capital Economics.
"Investor concern about fiscal risks is also supporting the price of other precious metals."
The dollar tumbled on Wednesday, as investors weighed the prospect of tighter AI regulation and its potential drag on economic growth.
A weaker dollar makes dollar-denominated gold less expensive for buyers holding other currencies, supporting demand for the precious metal.
"The fact that the Fed is likely to remain hawkish due to the inflationary backdrop…
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