Gold prices climbed above $4,000 an ounce on Wednesday, gaining more than 2% as a weaker US dollar and falling Treasury yields supported renewed demand for the precious metal.
Spot gold rose 2.4% to $4,021.68 an ounce, while US gold futures advanced 2.3%. The move followed Democratic victories in the US midterm elections, with the party securing control of Congress, adding to political uncertainty and supporting gold’s safe-haven appeal.
The US dollar fell to a one-month low, while lower Treasury yields provided further support. Expectations of tighter AI regulation and increased political gridlock also contributed to market uncertainty.
Record gold exchange-traded fund holdings have provided an additional source of support, according to FX Leaders, reflecting continued investor interest in the precious metal.
Attention is now turning to Friday’s US non-farm payrolls report, which could influence expectations for the Federal Reserve’s next interest rate decision.
From a technical perspective, FinanceFeeds identified $4,115 as a potential upside level, while $3,920 represents an important downside reference point.
Atlas Metals Group plc (LON:AMG) is focused on identifying projects and/or acquisition opportunities with the potential for growth and value creation in commodities which face high demand due to global macroeconomic, energy transition, and technology trends.
