Gold heads for best week since August as U.S. political shift lifts bonds

Gold  |  2026-11-05 23:56:48   |   By

They added that physical buying remained robust, “Central banks added a net 321t to their reserves in the third quarter,” the fastest pace since late 2024, as geopolitical risks and concerns over fiscal discipline reinforced institutional demand for bullion.

SEATTLE (Scrap Monster):  Gold prices eased on Friday but remained on course for their strongest weekly advance since August, as the U.S. midterm election outcome weakened the dollar and Treasury yields.

Investors also weighed renewed equity-market losses against expectations of a shift in U.S. fiscal and monetary policy.

At 20:22 ET (01:22 GMT), spot gold fell 0.1% to $4,083.31 an ounce, while U.S. gold futures declined 0.5% to $4,092.67. Silver edged up 0.1% to $51.8615 an ounce, while platinum slipped 0.2% to $1,517.17. Spot palladium fell 0.9% to $1,025.28, while palladium futures lost 0.8% to $1,025.25. The U.S. dollar Index edged up 0.1% to 101.62.

Bullion has gained more than 5% this week after the Democratic sweep of Congress sent the dollar and Treasury yields lower.

However, gold remains vulnerable to equity-market liquidations as investors sell assets to cover losses elsewhere. The precious metal was trading near $4,090 an ounce after a strong rally, while technology stocks extended their decline for a third session on Friday.

The selloff followed concerns that Democratic control of Congress could bring tighter regulatory scrutiny of artificial intelligence companies, particularly amid growing voter opposition to data-centre expansion.

The resulting flight to safer assets lifted demand for U.S. Treasuries, pushing yields to their lowest levels since early September. The dollar recovered slightly, reducing gold's appeal for buyers using other currencies.

ANZ analysts said expectations of tighter fiscal constraints under a Democratic-controlled Congress had helped pull Treasury yields lower, although reduced government borrowing could also weaken one source of gold demand.

They added that physical buying remained robust, “Central banks added a net 321t to their reserves in the third quarter,” the fastest pace since late 2024, as geopolitical risks and concerns over fiscal discipline reinforced institutional demand for bullion.

Traders will now look to U.S. nonfarm payrolls report later on Friday for fresh clues on economic momentum and the interest-rate outlook.

Courtesy: www.investing.com