Gold, silver and precious metals jump as Democrats take Congress
CNBC • • business
Key Points:
- Precious metals surged on Wednesday morning following the U.S. midterm elections, with spot gold rising 2.83% to $4,039.59 per ounce and spot silver jumping 4.32% to $51.92 per ounce.
- Democrats are projected to have won control of the House and several governorships, leading to a weaker U.S. dollar and lower Treasury yields, which supported the gains in precious metals.
- Market analysts suggest that Democratic control could increase fiscal uncertainty and pressure on rates and the dollar, potentially benefiting gold as a safe-haven asset despite a hawkish Federal Reserve stance.
- Despite a strong rally in 2025, gold and silver prices have declined this year due to rising inflation, higher bond yields, and restrictive monetary policies, with gold down over 7% and silver nearly 28% year-to-date.
- Analysts warn that while geopolitical uncertainty supports precious metals, restrictive monetary policies and equity market volatility pose risks to sustained safe-haven demand and price recovery.
