Gold prices surged sharply as the U.S. Congress came under Democratic control

Precious metals posted steady gains during trading on November 4—following the announcement of preliminary results from the U.S. midterm elections. The results showed that the Democrats had gained control of both houses of Congress, according to CNBC.

Gold futures jumped 2.9%, reaching $4,044 per ounce. Silver rose by 4.7% at once, surpassing the $52-per-ounce mark. Among other metals that saw significant price increases were platinum and palladium.

If the Democrats gain control of both houses of Congress, it will support gold, as interest rates and the dollar will come under pressure, predicted Rorona O’Connell, head of market analysis for the EMEA and Asia regions at StoneX, ahead of the election. In her view, a reduction in fiscal stimulus will contribute to lower long-term yields and a weaker U.S. dollar, while the standoff over the budget and the debt ceiling will heighten uncertainty. At the same time, the analyst warned that gold prices would be weighed down by market expectations of another Fed rate hike.

"The problem for precious metals is that geopolitical uncertainty does not automatically translate into demand for safe-haven assets when investors are also concerned about tight monetary policy," warned Daniela Hathorn, senior market analyst at Capital.com. Precious metals also face the risk of position liquidation during sharp stock sell-offs, as investors sell profitable or liquid assets to free up cash, she added.

Gold and silver prices reached record highs in 2025, surging 66% and 135%, respectively: Investors sought safe-haven assets amid geopolitical uncertainty and broad market volatility, CNBC notes. But this year, that momentum has fizzled out: rising inflation, a spike in bond yields, and “hawkish” central bank policies have stripped the metals of their support. Since the start of the year, gold has lost more than 7% of its value, while silver has plummeted by nearly 28%.

Futures on U.S. stock indices recovered from the losses they suffered during overnight trading and moved firmly into positive territory. Futures on the broad-market S&P 500 index were up 0.9% an hour and a half before the start of the main session, while Dow Jones futures jumped 1.6%. Futures on the Nasdaq-100 technology index rose less sharply than others: AI stocks are under pressure due to uncertainty stemming from Democratic criticism of the aggressive expansion of data centers.

The dollar posted its sharpest decline since September, falling against all major global currencies, according to Bloomberg.

Oil prices have fallen: Investors are waiting to see what Washington’s next moves will be in the war against Iran, according to CNBC. Futures for the benchmark Brent crude fell 1.4% and were trading at around $102 per barrel.

This article was AI-translated and verified by a human editor