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Gold and silver prices jump as US midterm results weaken dollar and Treasury yields
Gold and silver prices jump as US midterm results weaken the dollar and Treasury yields, while investors assess the outlook for precious metals.
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Gold and silver prices jumped on Wednesday morning as the US dollar weakened following the 2026 US midterm election results. Other precious metals, including platinum and palladium, also recorded strong gains.
Spot gold climbed 2.64% to $4,031.98 per ounce by 3:37 am ET. Meanwhile, spot silver jumped 4.17% to $51.8495 per ounce, according to CNBC market data.
Gold, silver prices rise after US midterm results
Gold and silver futures also traded higher:
- Front-month gold futures rose 2.53% to $4,039.90.
- Silver futures gained 4.21% to $51.85.
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Other precious metals also recorded gains during Wednesday's trading session.
- Platinum jumped 2.82% to $1,455.96 per ounce.
- Palladium rose 3.8% to $969.33 per ounce.
The gains came as votes were still being counted in the US midterm elections. Democrats were projected to win control of the House of Representatives, while several governors' offices also turned blue.
The election results also affected other financial markets. US stock futures broadly fell as the results came in, while US Treasury yields moved lower. Oil prices edged slightly higher, and the US dollar index fell around 0.3%, according to CNBC market data.
Why did gold and silver prices rise?
The weaker US dollar helped support gold and silver prices. Precious metals are generally priced in dollars, so a weaker dollar makes them less expensive for buyers using other currencies. This can increase demand for these metals.
Also read: US midterm election results LIVE
Falling US Treasury yields also supported precious metals. Gold and silver do not pay interest, unlike many bonds. When Treasury yields fall, the opportunity cost of holding non-interest-paying assets such as gold becomes lower, making them more attractive to investors.
Rhona O'Connell, head of market analysis for EMEA and Asia at StoneX, said gold could find support if Democrats won control of both chambers of Congress. She said such an outcome could put pressure on interest rates and the US dollar.
O'Connell said Democratic control of Congress could also increase uncertainty because of possible disagreements over government spending and economic policies. She described the possible situation as one involving "fiscal brinkmanship" and "institutional friction", which could increase market uncertainty, according to CNBC.
O'Connell also said the impact of the Iran war and a weaker US dollar would compete with the effects of a hawkish Federal Reserve. A hawkish Fed generally favours higher interest rates to control inflation, which can put pressure on gold prices.
She explained that lower government spending stimulus could push long-term Treasury yields lower and weaken the dollar. However, concerns about a possible debt-limit dispute could increase the risk premium on short-term Treasury bills, according to CNBC.
O'Connell also pointed to the possibility of the Federal Reserve leaning towards another interest rate hike. This could limit the gains in precious metals even if the dollar and Treasury yields weaken.
Also read: US midterm election results: States which flipped blue
Can gold prices recover after this year's fall?
Gold and silver had a strong rally in 2025 as investors looked for safer assets amid geopolitical tensions and uncertainty in financial markets.
During 2025, Gold prices surged 66% and Silver prices climbed 135%. Both metals recorded record-breaking rallies as investors increased their demand for safe-haven assets. However, the rally lost momentum in 2026. Rising inflation, higher bond yields and central banks maintaining a hawkish approach to interest rates reduced support for precious metals.
Gold prices have fallen more than 7% since the beginning of 2026, while silver prices have dropped almost 28% over the same period, according to CNBC.
Spot gold also rose on Monday as oil prices retreated. Following the latest gains, gold was on track for a weekly rise of around 3.7%. However, analysts cautioned that the recovery in precious metals may not last unless broader economic and monetary conditions become more supportive.
Gold price recovery remains uncertain
Daniela Hathorn, senior market analyst at Capital.com, said the recovery in precious metals remained fragile. Hathorn said geopolitical uncertainty does not always lead to higher demand for safe-haven assets.
Investors are also concerned about restrictive monetary policies, which can reduce the appeal of gold and silver. She also warned that precious metals could face selling pressure during sharp falls in stock markets, according to CNBC.
Investors may sell assets such as gold and silver, even if they are profitable or easy to sell, to raise cash and cover losses elsewhere. This means that despite the recent rise, gold and silver could continue to face pressure from inflation concerns, interest rate expectations and sudden changes in investor sentiment.
