Gold and silver prices rebounded on Wednesday, November 4, ahead of Dhanteras, with both precious metals gaining amid weakness in the US dollar and changes in global market sentiment following the US midterm elections. According to reports from CNBC TV18, on the Multi Commodity Exchange (MCX), December gold futures were trading at ₹1.42 lakh per 10 grams, up 2.36%, while December silver futures rose 4.06% to ₹1.86 lakh per kg. The recovery comes after considerable volatility in precious metal prices during 2026, with gold touching a record high of approximately $5,595 per ounce in January before undergoing a sharp correction. Silver prices staged a sharp recovery on Wednesday, rising more than 4% to move back above the $50-per-oz mark after Democrats secured victory in the US midterm elections, offering relief to investors after the metal's recent steep decline.
The weakness in the US dollar following early results from the November 3 US midterm elections has supported gold and silver prices, according to Gaurav Garg, Head of Research at Lemonn. As reported by CNBC TV18, Garg said the possibility of Democrats gaining control of Congress had weighed on US equities and the dollar, while Treasury yields had declined. The political outcome also weighed on the US dollar and Treasury yields, providing support to precious metals, with global equities falling on Wednesday while the dollar touched a one-month low after Democrats secured a decisive victory. Kyle Rodda, senior financial market analyst at Capital.com, told Reuters that gold has benefited from yields and the dollar dropping due to the opinion that gridlock between the executive and legislature could slow US spending. The result has raised concerns that a Democratic sweep could disrupt the data centre expansion driving the artificial intelligence trade and weigh on technology spending.
Gold and silver prices traded higher in international markets on Thursday, November 5, with international gold spot price trading just above $4,127, up 1.65%, and silver inching 1.72% above $52 over the past 24 hours. According to Moneycontrol, US gold futures were trading with a 1.52% increase to $4,135 per ounce, while silver rose 1.58% to $53.11 per ounce. The US dollar weakened after Democrats secured majorities in both the Senate and the House of Representatives in the midterm elections, with the dollar index falling 0.53% to 101.18. A weaker dollar generally supports gold and silver prices because it makes dollar-denominated commodities relatively cheaper for buyers using other currencies. Domestic spot gold closed Tuesday session at ₹1,41,255 per 10 grams and silver at ₹1,85,654 per kilogram on Multi Commodity Exchange, with MCX gold futures for December 4 delivery inching 0.04% to ₹1,43,293 per 10 grams. In the latest international trading, spot gold was 3.4% higher at $4,061.30 an ounce, while spot silver jumped 5.1% to trade at $52.29 per ounce, with front-month gold futures adding 3.4% to settle at $4,073 and silver futures up 5.1% at $52.28.
Latest domestic gold and silver prices across major Indian cities on November 5 show continued strength following the US midterm election results. According to Mint, MCX gold futures were trading 1.5% higher at ₹1,46,030 per 10 grams, while MCX silver futures rose by around 1.62% to ₹1,91,250 per kg at around 9:13 am. In major cities, 24-karat gold rates range from ₹1,45,510-₹1,46,020 per 10 grams across Delhi, Mumbai, Chennai, Kolkata, Bengaluru, and Hyderabad, while 22-karat gold rates are priced between ₹1,33,384-₹1,33,853 per 10 grams. Silver 999 rates vary from ₹1,90,570-₹1,91,290 per kilogram across different cities. The domestic market continues to reflect the positive sentiment from the US election outcome and dollar weakness, with organized jewellery brands like Kalyan Jewellers, PC Jeweller, Lalithaa Jewellery, and Senco Gold expected to benefit from the precious metal rally.
While gold is seeing immediate support, it is unlikely to see sharp upswings in the coming weeks as US Federal Reserve is likely to remain hawkish due to concerns around sticky inflation. Hamad Hussain, senior climate and commodities economist at Capital Economics, told Reuters that the Fed's likely hawkish stance means limited scope for further gold price gains. A major poll of voters reported by the BBC, nearly 75% of respondents expressed that the economy is "not so good or poor," whereas 25% maintained that the US economy is currently in "excellent or good state." With Democrats now controlling both the Senate and House of Representatives, investors await this week's US payrolls data for fresh signals on the Federal Reserve's rate outlook. Gold witnessed a sharp recovery as significant short covering emerged following the US election results, with Jateen Trivedi, VP Research Analyst at LKP Securities, noting that the outcome with neither Republicans nor Democrats expected to have a decisive majority could limit scope for major legislative changes and reduce concerns over further fiscal expansion. Going ahead, market participants will closely track the dollar, US bond yields and the Fed's policy stance to assess whether the recovery can sustain.
