Gold hits a two-week high as dollar, Treasury yields ease after US midterm elections
US gold futures for December delivery climbed 1.8% to US$4,144.20
On Thursday, November 5, gold prices surged to a two-week high, climbing nearly 2 percent. The increase was driven by a weaker US dollar and lower US Treasury yields following a Democratic wave in the midterm elections. Spot gold rose 1.9 percent to $4,134.83 per ounce by 3:16 GMT, reaching its highest level since October 22. Gold futures for December delivery climbed 1.8 percent to $4,144.20.
Analyst Linh Tran noted that if investment flows and yield movements continue to provide support, gold could stabilize above $4,000, potentially reaching $4,200 and then $4,400. The weaker dollar makes gold more affordable for holders of other currencies. Meanwhile, traders await the upcoming US nonfarm payrolls report on Friday to further assess the Federal Reserve's monetary policy outlook.
Citi has set a price target of $4,500 per ounce for gold, given potential upside from the Strait of Hormuz reopening and the de-escalation of the Yemen/Saudi conflict by year-end. Silver, platinum, and palladium also saw gains, with silver rising 1.7 percent to $53.12 per ounce, platinum up 2.1 percent to $1,527.65, and palladium increasing 2.6 percent to $1,030.14.
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Also reported by 2 other outlets
- Gold extends rebound above US$4,100 as dollar and yields decline freemalaysiatoday.com
- Gold Holds Above $4,000 as Dollar, Yields Fall on Midterm Result bloomberg.com
