BANGKOK, Thailand – Gold prices climbed above US$4,000 an ounce on November 4, gaining more than 2% as markets reacted to the US midterm election results, which gave the Democratic Party control of both the Senate and House of Representatives.
At around 1pm Thailand time, global gold prices had risen by more than US$70 an ounce, or nearly 2%, according to HSHsocial, the official page of Thai gold trader Hua Seng Heng. Reuters later reported spot gold at US$4,016.01 an ounce, up 2.2%, as a weaker US dollar and falling Treasury yields supported demand for the precious metal.
The election result has raised questions about the balance of political power in Washington and the Trump administration’s ability to advance its economic and fiscal policies in 2027. Investors are also assessing possible changes affecting industries such as artificial intelligence and data centers, defense spending, banking regulations and cryptocurrency.
Hua Seng Heng said political uncertainty was supporting gold in the short term. Democratic control of Congress could place greater limits on the administration’s policy agenda, while the weaker dollar and lower bond yields have made gold more attractive to investors.
However, geopolitical tensions remain another important influence. The United States and Iran are still far from an agreement to end their conflict, despite Qatar’s efforts to mediate. US forces have also carried out limited strikes against military targets on Iran’s Qeshm Island, described by US officials as defensive action. Uncertainty surrounding the Strait of Hormuz continues to pose risks to energy supplies and financial markets.
Monetary policy could also limit further gains. Markets were pricing in approximately a 77% probability of a Federal Reserve interest-rate increase at its December meeting, according to futures-based estimates reported on November 4. Higher interest rates can weigh on gold because the metal does not pay interest.
Investors are also watching the US ADP private-sector employment report and the non-farm payrolls report scheduled for November 6 for further indications of the Federal Reserve’s likely policy direction.
Hua Seng Heng described the move above US$4,000 as a positive short-term signal, but said the market would need to show that it could sustain prices above that level. Political uncertainty, geopolitical risks and the direction of US monetary policy remain key factors for gold.
