Gold prices have surged above $4,000 per ounce following the US midterm election results, with December gold futures trading at $4,027.30 an ounce at 06:36 GMT on Wednesday, November 4, representing a 2.2% gain. According to Yahoo Finance, spot gold crossed $4,000 at about the same time, marking a significant milestone for the precious metal. The rally was triggered by Democrats winning the House and being projected by CBS News to control the Senate, which has created a weaker dollar environment and declining Treasury yields. StoneX's Matt Simpson called $4,000 the obvious resistance before the break, with the daily close representing the first test of this level. Support levels are identified at $3,920-$3,930 area, while resistance stands at $4,074-$4,083 and $4,104-$4,115. Latest reports show gold gained around $125 per ounce, reaching $4,047 at the time of writing, as the outcome of the US midterm elections boosted demand for the precious metal.
Jewellery stocks experienced significant gains on Thursday, November 5, as gold prices climbed nearly 2% to a two-week high following the US midterm election results. According to reports from LiveMint, the rally was supported by a weaker US dollar and declining US Treasury yields following a Democratic wave in the US midterm elections. Motisons Jewellers shares surged 3.9% to ₹15.55, while Senco Gold gained 3.7% to ₹322.65. PC Jeweller advanced 3.2% to an intraday high of ₹16.32, and Kalyan Jewellers rose 2.7% to ₹544.70. Titan shares gained 2.3% to ₹4,858.90. The Nasdaq-100 futures traded as low as 27,738 overnight, a drop of about 2% at the worst, before recovering to 28,203 by 06:36 GMT, as reported by Yahoo Finance.
On the Multi Commodity Exchange (MCX), gold was trading at ₹1,46,109 per 10 grams, registering an intraday gain of 2%, or ₹2,875. Silver prices rose 1.7%, or over ₹3,200 per kg, to ₹1,90,946. According to LiveMint, globally, spot gold rose 1.9% to $4,134.83 per ounce, hitting its highest level since October 22. US gold futures for December delivery advanced 1.8% to $4,144.20. In Egypt, 21-karat gold price climbed by EGP 90 per gram during Wednesday's trading, reaching EGP 6,230, while 24-karat gold stood at EGP 7,120 per gram and 18-karat gold reached EGP 5,340. The gold pound was priced at approximately EGP 49,840. In India, 24-karat gold rose 2.26% to ₹14,280 per gram following the midterm election results. Silver ETFs rallied up to 6% as silver prices rebounded above $51 per ounce, with silver prices surging over 4% to reclaim the $51/oz mark after Democrats secured a victory in the US midterm elections.
Indian stock markets also soared around 2% after Trump's loss as well as a crash in crude oil prices. As reported by LiveMint, Sensex surged 2%, or 1,621 points, to an intraday high of 78,922.44, while the Nifty 50 advanced 431 points, or 1.8%, to touch 24,391.95. Among smaller jewellery-related stocks, Swarnsarita Jewels India traded at ₹40.80, up 3.3%, while Omara Ventures India was trading at ₹327, up 2.5%. Nityas Gems and Jewels gained 2.5% to ₹65.50, and Dev Labtech Ventures advanced 2.2% to ₹23.40. Brent crude prices declined sharply below $100 per barrel and were trading at $94 per barrel at the time of reporting. Brent settled at $103.60 on Tuesday, its lowest close since 7 October, with cheaper energy lowering the inflation outlook and reducing the case for Federal Reserve hikes. The US dollar also declined against the Egyptian pound, trading at approximately EGP 54.90, limiting the impact of the global rally on domestic gold prices in Egypt.
According to LiveMint, Foreign investors also infused around ₹17,235 crore into Indian equities in just three trading sessions in November, reflecting a return of overseas institutional buying. The dollar edged lower on Thursday following the Democrats' overwhelming victory in the US midterm elections, which removed a major source of uncertainty and fuelled a rally in global equities. A divided government makes new fiscal measures less likely, and markets read that as dollar-negative, with split government in Washington lowering the odds of new fiscal measures passing. Anticipation about the forthcoming non-farm payrolls report could influence Federal Reserve decisions, with Citi predicting a rise in gold should geopolitical tensions reduce. Geopolitical concerns surrounding the US-Israeli war with Iran continue to support demand for safe-haven assets, adding another layer of support to gold's rally.
Gold and silver prices have risen as Dhanteras and Diwali approach, sparking increased shopping interest. Major jewellery brands reported higher rates for 22k gold jewellery across various cities today. Tanishq, Malabar Gold & Diamonds, Joyalukkas, and Kalyan Jewellers all raised their Gold rates significantly. The India Bullion and Jewellers Association also released updated indicative rates for gold, reflecting the seasonal demand surge during the festive period. The mix of a weaker dollar, lower yields and nervous equities creates close to the best setup gold gets, as analysts noted that before the vote, a Democratic clean sweep could put pressure on the dollar, which would support gold.
