Gold held near $3,920 an ounce Tuesday as traders tried to stabilize the metal after Friday’s slide to a one-year low and waited on the US midterm elections.
Spot gold fell 3.6% Friday to about $3,870, its lowest since October 2025, as a selloff in tech and AI stocks triggered margin calls and forced investors to sell gold. Gold then rose 1.7% Monday to about $3,943 as oil fell more than 6% after Iran and Qatar held a third straight day of talks aimed at ending the war with Iran. Cheaper oil eased inflation concerns, giving gold some relief. Prices sat near $3,920 Tuesday, down about 0.7% on the day.
Previously: Gold Slips Toward $4,100 as Traders Wait on US Inflation Data
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Fed policy still weighs on the metal. Traders see a 76.6% chance of a December rate hike, down from 80% a week earlier, according to CME FedWatch. Higher rates raise the opportunity cost of holding gold, which pays no interest. Silver rose 3.4% Monday to $50.77 after breaking below $50 on Friday for the first time since November 2025.
And then there’s the midterms. KCM Trade analyst Tim Waterer said a Democratic sweep could hurt the AI data-center build-out and tech stocks, and that “pressure on technology stocks could spill over into gold,” because traders have sold gold to cover losses elsewhere instead of buying it as a haven.
Julius Baer analyst Carsten Menke said the US fiscal outlook is unlikely to change enough to matter for gold.
One Response
It is more of a cautious view. In my opinion, the change in the congress and senate will neutralize all the past headwinds and can trigger a strong bullish tailwind relief rally in the short term. It can eclipse the previous highs before it settles down. The sentiment is strong enough for a huge rally after prolonged congestion….