Gold and silver prices jump as US midterm results weaken dollar and Treasury yields

Gold and silver prices surged on Wednesday as the US dollar weakened following the 2026 midterm election results. Spot gold rose 2.64% to $4,031.98 per ounce, while spot silver jumped 4.17% to $51.8495 per ounce, according to CNBC data. Precious metals like platinum and palladium also saw strong gains. The election results still in progress saw Democrats projected to take control of the House of Representatives, and several governor offices flipping to the Democrats.

The weaker dollar made precious metals less expensive for buyers using other currencies, increasing demand. Falling US Treasury yields also supported precious metals, as they are not interest-bearing like many bonds. Investors perceived Democratic control of Congress as potentially unstable due to disagreements over spending and policies, and the Iran war, along with a weaker dollar, could compete with a hawkish Federal Reserve's interest rate hikes.

However, analysts cautioned that the rally may not last unless economic and monetary conditions become more favorable.