Gold jumped back above $4,000 an ounce early Wednesday as the dollar weakened amid signs of a Democratic rout in the U.S. midterm elections.
Investors awaited the release of key U.S. jobs reports for October for further direction, including the private payrolls report from ADP due out Wednesday and the nonfarm payrolls report from the Labor Department on Friday.
December gold fell 0.7% Tuesday to settle at $3,940.40 an ounce on Comex, though the front-month contract rose 1.1% in the first two days of the week. Bullion dropped 6.9% last month after losing 6.6% in September and rising 9.1% in August. It’s down 9.2% so far this year after rallying 64% in 2025. The December contract is currently up $103.30 (+2.62%) an ounce to $4043.70 and the DG spot price is $4047.80.
The weaker dollar provided support for gold, making the yellow metal a more attractive investment. Investors also sought gold against uncertainty amid move toward divided government in the U.S.
Democrats flipped the U.S. House and Senate in Tuesday’s midterm elections, flipping previously solidly Republican states like Texas and South Carolina. Other key Democratic victories came in Maine and Michigan.
The shift in power came as high oil prices from the war in Iran have triggered a surge in inflation and expectations of higher interest rates. The Federal Reserve closely watches inflation and labor market data when setting monetary policy.
The key October jobs report is due out Friday, coming on the heels of last week’s release of the personal consumption expenditures price index—the Fed’s favorite inflation measure. It showed that inflation accelerated in September.
Over 78% of the investors tracked by the CME FedWatch Tool are betting that the Fed will rase rates by 25 basis points in December, with the rest expecting rates to remain unchanged. Last month, the Fed kept interest rates at 3.75% to 4.00%, though the vote included two dissentions. The Fed raised its benchmark rate by 25 basis points in September.
December silver futures slid 2.2% Tuesday to settle at $49.75 an ounce on Comex, though the front-month contract rose 1% in the first two days of the week. The most-active contract touched a record above $115 in January. Silver plummeted 19% last month after falling 9.6% in September and climbing 16% in August. It is down 30% so far this year after rising 141% in 2025. The December contract is currently up $2.132 (+4.29%) an ounce to $51.885 and the DG spot price is $52.22.
Spot palladium lost 3.4% Tuesday to $942.50 an ounce and has tumbled 4.9% so far this week. Palladium fell 18% last month after losing 11% in September and rallying 5.7% in August. It’s down 42% in 2026 after rising 74% last year. Currently, the DG spot price is up $57.90 an ounce to $999.00.
Spot platinum fell 1.8% Tuesday to $1,432.30 an ounce and has dropped 0.4% this week. Platinum slid 16% last month after falling 4.6% in September and increasing 7.5% in August. Platinum is down 29% so far this year after increasing 122% in 2025. The DG spot price is currently up $49.40 an ounce to $1481.40.
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