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.
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. The election results also affected other financial markets. US stock futures broadly fell as the results came in, while US Treasury yields moved lower. 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.
Oil prices edged slightly higher, and the US dollar index fell around 0.3%, according to CNBC market data. 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. Because of possible disagreements over government spending and economic policies, o’Connell said Democratic control of Congress could also increase uncertainty.
She said such an outcome could put pressure on interest rates and the US dollar. 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. However, concerns about a possible debt-limit dispute could increase the risk premium on short-term Treasury bills, according to CNBC. 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.
