04.11.2026 17:01
After the Democrats won both chambers of Congress in the US midterm elections, the dollar depreciated, bond yields declined, and precious metals rose sharply. Gold per ounce rose above $4,040 with an increase of nearly 3 percent. Domestically, gold per gram tested the 6,500 lira level. Silver, platinum, and palladium also saw increases between 3 and 5.5 percent. In the markets, eyes turned to the US employment data to be announced on Friday.
The midterm election results in the US caused investors in global markets to reconsider their positions. While demand for gold, seen as a safe haven, increased, the rise was also reflected in domestic markets throughout the day.
DEMOCRATS WON BOTH CHAMBERS OF CONGRESS
According to projections by CNN, NBC News, and CBS News, Democrats will take control of the House of Representatives and the Senate starting in January. According to CNN data, Democrats took seven seats from Republicans in the Senate: Ohio, Iowa, South Carolina, Maine, North Carolina, Kansas, and Texas. According to the same data, the number of Democratic Senate seats reached 54, while Republicans remained at 44 seats. The results of the races in Alaska and Mississippi have not yet been finalized.
According to Time magazine, this result was the fifth election since World War II in which a party won both chambers of Congress in midterm elections. Speaking to CBS News on election night, President Donald Trump said he would work with Democrats but would use his veto power if necessary.
SPOT GOLD EXCEEDED $4,040
Spot gold, which had fallen to around $3,900 in the previous trading day, entered a rapid rise with the election results. According to Reuters data, spot gold was trading at $3,947 per ounce at 07:15 Turkey time. The rise accelerated as the results became clear. According to data reported by CNBC, spot gold gained 2.97% at 11:32 to $4,044, while December futures gold contracts rose 2.94% to $4,056.
SHARP RISE ALSO IN SILVER, PLATINUM, AND PALLADIUM
The rise spread to other precious metals as well. Spot silver rose 4.27% to $51.90 per ounce. Platinum rose 3.38% to $1,463.95, and palladium rose 5.57% to $985.50.
Despite this rise, precious metals are still down year to date. According to CNBC, gold has lost more than 7% since the start of the year, while silver has lost about 28%.
THE FIRST REASON GOLD SOARED: THE DOLLAR AND BONDS
The first reason for the rise was the weakening of the dollar and the decline in US Treasury bond yields. With the election results, the dollar index fell to around 101.5 and saw its lowest level in the past month. According to Bloomberg, markets interpreted the election results as a reduced likelihood of an agenda that would widen the budget deficit during Trump's remaining two years being implemented.
Pepperstone Head of Research Chris Weston said that a weaker dollar and a sharp decline in both nominal and real US bond yields clearly supported gold. US stock index futures, which fell sharply during the night, recovered their losses in the morning, according to CNN.
SECOND REASON: IRAN UNCERTAINTY
The second factor supporting gold was developments in the Middle East. A senior Iranian official speaking to Reuters said the two countries were still far from an agreement that would end the war. Trump keeping the military operation option on the agenda also kept concerns about geopolitical risks alive.
While precious metals rose, oil prices started the day lower. In the morning, the barrel price of Brent crude fell to $103.34, and the barrel price of US West Texas Intermediate (WTI) crude fell to $95.56.
GRAM GOLD TESTED 6,500 LIRA
The rise in global markets also had an effect domestically. Gram gold, which closed yesterday at 6,303.78 lira, tested the 6,500 lira level during the day with an increase exceeding 3%. The dollar/TL was trading at 50.02.
As of 15:16 in the Grand Bazaar, current gold prices were as follows:
- Gram gold: Buy 6,467.02 TL, sell 6,539.82 TL
- Quarter gold: Buy 10,563 TL, sell 10,655 TL
- Spot gold: $4,036
$4,050 IS A CRITICAL THRESHOLD
Analysts point to around $4,050 in spot gold as a critical resistance zone. According to IG's assessment, the $4,046 to $4,073 range will be decisive for whether the rise is lasting. StoneX analyst Matt Simpson also considered the $4,000 level an important threshold.
Some analysts speaking to Kitco News suggested that a Democratic congressional majority could lay the groundwork for a gold rally throughout 2027. The same analysts warned that Congress changing hands would not immediately reduce uncertainty regarding the conflict in Iran. A senior market strategist commenting to Kitco argued that gold's long-term upward trend may have been broken.
CENTRAL BANKS BOUGHT 321 TONS
According to World Gold Council data, central banks bought a net 321 tons of gold in the third quarter of the year. In the same period, total assets in gold investment funds reached a record level of 4,256 tons.
EYES ON THE FED AND EMPLOYMENT DATA
According to CME FedWatch data, markets are pricing in a 78% probability that the US Federal Reserve (Fed) will raise interest rates in December. The expectation of a rate hike is cited among factors that could put pressure on gold, which yields no return. Investors' focus is on US nonfarm payrolls data to be released on Friday.