Gold Prices Rise Two Percent After US Midterm Election Results

Gold prices climbed about two percent on Wednesday as a weaker US dollar followed a sweeping victory by Democrats in the US midterm elections. Democrats won control of both the House of Representatives and the Senate on November 3, 2026, dealing a major blow to President Donald Trump and his Republican Party. Voters expressed strong dissatisfaction with the administration over rising living costs, tariffs, and the war against Iran. Despite this bounce, domestic gold prices remain more than 22 percent below their 2026 peak following an earlier correction driven by crude oil prices, inflation worries, and higher US interest rate expectations.

Market Prices And Rates

On the Multi Commodity Exchange, December gold futures traded at ₹ 1,42,471 per 10 grams, up around 2 percent. Internationally, spot gold rose 2.2 percent to $4,016.01 per ounce, while US December gold futures climbed 2.2 percent to $4,026.90. Vikram Subburaj, CEO of Giottus.com, noted that investors continue to price in a 78 percent probability of a Federal Reserve rate hike in December. Deveya Gaglani, Senior Research Analyst at Axis Direct, expects gold to test ₹ 1,12,710 and ₹ 1,09,663 if the rate hike happens, but sees remaining downside risk limited to 5 to 8 percent. Ventura expects November trading between $3,900 and $4,200, or ₹ 1,40,000 to ₹ 1,50,000.

Expert Outlooks

Avinash Agarwal, Senior Vice President at Bandhan Life, stated that the long-term outlook remains positive due to central bank purchases and a shift towards gold as an alternative to the US dollar. NS Ramaswamy, Head of Commodity at Ventura, highlighted a tug-of-war between bearish global financial indicators and constant domestic physical demand, with festive and wedding purchases expected to support prices. Gaglani advised investors to accumulate gold in a staggered manner, maintaining a price target of ₹ 1,65,000 to ₹ 1,80,000 levels by the next Dhanteras.

Context

US midterm elections happen halfway through a president's four-year term and often change control of Congress, which directly impacts the president's ability to pass laws. Central banks frequently buy gold to diversify their reserves and protect against currency fluctuations. Domestic gold demand in India traditionally stays strong during festival and wedding seasons regardless of global market swings.