Gold Hits Two-Week High as Dollar and Yields Fall After US Midterms
Gold climbed to its highest level in more than two weeks on Thursday, November 5, 2026, extending a sharp recovery that began after the US midterm elections. A weaker dollar, lower bond yields, and falling oil prices all pulled in the same direction, lifting the metal further above $4,000 an ounce.
What happened
Spot gold rose 1.4% to $4,117.69 an ounce by 1316 GMT, Reuters reported, after touching $4,146.63 earlier in the session, its highest since October 20. US gold futures for December delivery rose 1.3% to $4,127.40 an ounce.
The move followed a jump of nearly 3.4% on Wednesday, gold’s sharpest daily rise since August 19. Gold is now up more than $250 this week from a one year low of $3,869.85 hit on Friday, October 30. That low came just days after gold had fallen below $4,000 for the first time since July, and gold passed $4,000 on Wednesday as the midterm results came in.
Three forces drove the rise. The US dollar fell to a multi-week low, which makes gold cheaper for buyers using other currencies. US Treasury yields also sat near multi-week lows, with the 10-year yield around 4.88%, which lowers the cost of holding gold since the metal pays no interest. And oil stayed below $100 a barrel after plunging nearly 9% on Wednesday, easing inflation worries.
The trigger was the midterm result. Democrats won control of both chambers of Congress, and traders bet the outcome could reduce the risk of further escalation in the war with Iran, which would pull oil prices and inflation lower. Lower energy prices ease pressure on the Federal Reserve to keep rates higher for longer.
Even so, traders still see an 81% chance the Fed will raise rates in December, according to the CME FedWatch tool. Gold is rising alongside that expectation, not against it, because the dollar and yields are falling at the same time.
Why it matters for beginners
Gold does not pay interest or a dividend, so its price often moves in the opposite direction to the dollar and bond yields. When the dollar weakens, gold becomes cheaper for overseas buyers. When yields fall, holding gold costs less in missed interest. Both happened this week, and gold responded fast.
The speed of the move is the lesson. Gold fell to a one year low on Friday, then gained more than $250 in less than a week. Big swings in both directions are normal for gold, which is why it is usually treated as a small part of a balanced portfolio rather than a safe bet on its own. Our guide to diversification explains why spreading money across different assets matters more than picking one winner.
Gold is also a useful reminder that one event can move many markets at once. The same election result that lifted gold also pushed oil down, pulled the dollar lower, and sent US stocks sharply higher on Wednesday before tech shares sold off on Thursday.
What to watch next
The October US jobs report, due Friday, November 6, at 8:30 a.m. Eastern Time. A Reuters poll expects 65,000 jobs added after 29,000 in September, with unemployment at 4.2%. A strong report could lift the dollar and yields, and cool gold. A weak one could do the opposite.
Whether gold holds above $4,000. It only climbed back above that level on Wednesday, so the next few sessions will show if the recovery has staying power or fades.
Whether oil stays below $100. Any fresh tension around Iran could push oil back up, which would lift inflation worries and could weigh on gold.
FAQ
Why did gold rise today?
The dollar and Treasury yields fell to multi-week lows after the US midterm elections, and oil stayed below $100 a barrel. A weaker dollar makes gold cheaper for overseas buyers, and lower yields reduce the cost of holding a metal that pays no interest.
How high did gold go?
Spot gold touched $4,146.63 an ounce, its highest since October 20, before trading around $4,117.69 by 1316 GMT. It is up more than $250 this week from a one year low of $3,869.85 on October 30.
Does this mean gold will keep rising?
Not necessarily. Gold fell to a one year low only last week, and it can fall as fast as it rises. The October jobs report on Friday and the direction of the dollar and yields are the next big tests.
Should beginners buy gold now?
This article is educational only and does not recommend buying or selling anything. Gold can add variety to a portfolio, but it pays no income and its price swings sharply, so beginners usually start by learning how it fits with stocks, bonds, and cash.
What is the next big event for gold?
The US jobs report on Friday, November 6. It will shape expectations for the Federal Reserve’s December meeting, where traders currently see an 81% chance of a rate rise.
Sources
Reuters, “Gold hits 2-week high as dollar, yields, oil fall after US midterms”, November 5, 2026. Reuters, “Gold rallies on softer dollar, easing yields after US midterm results”, November 5, 2026.
This article is for general information and education only. It is not legal or financial advice.
