Gold Prices Jump 3% After Dollar Hits Five-Week Low

Gold prices went up by 3% on Wednesday, November 4, 2026, after the dollar index dropped to a five-week low of 101.3. Spot gold reached $4,041 per ounce in its biggest daily jump in over two months. This comes after gold hit a one-year low on October 30 due to a slowdown in global tech stocks. A weaker dollar makes gold cheaper for buyers using other currencies, which increases demand.

Election Results

U.S. midterm election results show the Democrats winning big in both the Senate and the House. NBC News estimates that Democrats will win at least 258 seats, passing the 218 needed for a House majority. Manoj Jain, director and head of commodity and currency research at Prithvi Finmart Private Limited, said this price move is the initial market reaction to the election results. He noted it is too early to call it a trend reversal.

Market Outlook

Mr. Jain said gold prices may keep rallying next week and could consolidate near ₹1,30,000 per 10 grams by the end of the year as India's festive and marriage season keeps demand high. He added that uncertainty and policy worries will drop after the results, and precious metals could stabilise by year-end if crude prices stay below $100 a barrel and the Strait of Hormuz reopens.

Context

Changes in the U.S. dollar, crude oil prices, and geopolitical tensions often affect gold because investors look for safe assets during uncertain times. Lower inflation pressures and interest rate expectations from the U.S. Federal Reserve also play a key role in setting precious metal prices globally.