Gold after the midterms: why it climbed while stocks crashed

CNBC reports gold was up more than $250 in the week from the one-year low. Saxo Bank's Ole Hansen said: “Precious metals have emerged as major winners following the US elections.”

• A weaker dollar. Gold is priced in dollars, so a weaker dollar makes it cheaper for buyers in other currencies. One report put the dollar index near 101.48 after the vote; CNBC says the dollar fell to multi-week lows.
• Lower yields. Gold pays no interest, so it competes with bonds. When Treasury yields fall, as they did, holding gold costs less in forgone income. The 10-year yield fell about 8 basis points to near 4.89% in one report.
• Lower oil, lower inflation fears, fewer rate hikes. Brent fell nearly 9% on Wednesday, below $100. CNBC says lower energy prices ease inflation worries and reduce expectations of higher-for-longer rates. CME FedWatch odds of a December hike fell to 70.1% from 82.7%, per CNBC. A less aggressive Fed is good for gold.
• Short covering. CNBC says speculative short positions were covered after the moves, which adds buying on top of the other reasons.
• Hope for fiscal restraint. Schwab's reading is that gold and silver gained on hopes a Democratic Congress could limit borrowing and spending. Others read a divided government as a source of uncertainty, which also supports gold, so this one cuts both ways.
• A safe-haven bid on Thursday. As stocks crashed, gold held its gains and rose again.

The contrast is the main lesson of the day. Gold fell to a one-year low only a week before and then rebounded when the rate and dollar picture changed, which is a reminder that its move is driven by rates and the dollar as much as by fear. In a severe liquidity crunch investors sometimes sell gold to meet margin calls, as happened in March 2020, so “gold always rises when stocks fall” is not a rule.

• Friday's US jobs report. CNBC names the non-farm payrolls report as a coming catalyst. A strong number would raise rate-hike odds and pressure gold.
• The Bank of England. It was expected to raise rates for the first time in three years on Thursday, per CNBC.
• A rebound in oil or the dollar. Oil bounced on Thursday on doubts about an Iran deal; if it keeps rising, rate-hike odds could climb back.
• Fiscal fights. The debt ceiling and tariff policy could push yields up or down depending on how markets read them.

For households in countries where gold is bought as savings, the local price also depends on the currency. See India's gold import duty explained for how one country's rupee and duty changes shaped the price paid at home. None of this is a recommendation to buy or sell gold.

This is one of eleven connected pieces on the November 2026 election and market shock. Read them in order, or jump to the one you need.

1. 01The crash: what happened on 5 November
2. 02How $2.7 trillion was wiped out in a day, and whether that number is real
3. 03From rally to rout: why stocks rose on the Democratic win and crashed a day later
4. 04The Democratic win: what the midterm result changes
5. 05What a Democratic Congress means for the world economy
6. 06The data-center backlash and what it means for AI
7. 07Is it really an AI bubble? The evidence on both sides
8. 08Gold after the midterms (this article)
9. 09Bitcoin and crypto after the midterms and the chip crash
10. 10What happens next: the dates, scenarios and signals to watch
11. 11The discussion: the hardest questions about the crash and the AI bubble, answered

• Gold hits 2-week high as dollar, oil, yields fall after U.S. midterms — CNBC
• Gold Price Forecast: XAU/USD extends rally as Democrats' victory weakens US yields — FXStreet
• Stocks Surge: Big Democratic Win Eases Uncertainty — Schwab
• Dow tumbles 1,600 points, erasing its postelection rally; Nasdaq plummets 5%: Live updates — CNBC
• Stock market today: Nasdaq plunges 5% amid chip stock wipeout — Yahoo Finance