Gold rallies on softer dollar, easing yields after US midterm results
Spot gold rises 1.6% to $4,123.71; analyst sees potential recovery toward $4,200-$4,400 if support holds
Gold prices surged to a two-week high on Thursday, propelled by a weaker US dollar and easing Treasury yields following the Democrats' strong performance in the US midterm elections. This positive outcome has sparked optimism about a potential US-Iran peace deal, which could ease inflation concerns. The price of gold increased by 1.6% to $4,123.71 per ounce by 0609 GMT, reaching its highest level since October 20.
This marked a 3.4% gain on Wednesday, the largest single-day increase since August 19. Citi analysts highlighted the potential for further gains, setting a target of $4,500 per ounce if the Strait of Hormuz reopens and the Yemen/Saudi conflict de-escalates. Market analysts believe that a weaker dollar, lower interest rates, and falling oil prices are all contributing to the gold rally, making it an attractive investment option.
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