Gold prices surged by approximately 3% in global markets on Wednesday, marking their strongest daily increase since mid-August, as a weaker US dollar provided support following the Democrats’ decisive victory in the US midterm elections.
Spot gold climbed to around $4,041.60 per ounce, while US gold futures for December delivery rose to $4,051.80, enabling the precious metal to regain the $4,000 mark after its recent decline.
The rally came as the US dollar slipped to its lowest level in more than a month, with investors weighing the potential impact of political divisions in Washington on legislative progress, economic growth prospects and monetary policy.
Investors are now awaiting Friday’s US employment report, which could offer further clues about the Federal Reserve’s future interest rate decisions, amid persistent inflation concerns and geopolitical uncertainties.
Other precious metals also moved higher, with silver, platinum and palladium posting gains alongside gold.
