By Sukanya Mitra
Nov 4 (Reuters) – Gold prices edged higher on Wednesday, supported by a softer US dollar ahead of the outcome of the US midterm elections, while investors awaited the non-farm payrolls data later this week for clues on the Federal Reserve’s policy path.
Spot gold was up 0.1% to $3,931.24 per ounce by 0306 GMT, while US gold futures for December delivery steadied at $3,941.40.
“A weaker USD and a punchy decline in both nominal and real US Treasury yields are clearly providing support for gold,” said Chris Weston, head of research at Pepperstone.
Additionally, “the demand for protection against a potentially more unpredictable and confrontational Trump administration looks to be providing a compelling backdrop for gold buyers,” Weston added.
US stock futures slumped, Treasuries rallied and the dollar softened on Wednesday as Democrats notched early Senate wins, fuelling bets they could wrest control of the chamber from President Donald Trump’s Republicans, though the final outcome remained uncertain. [MKTS/GLOB] [USD/] [US/]
On the geopolitical front, Iran and the United States are still far from a deal to end their war, a senior Iranian official told Reuters on Tuesday, as Trump declined to rule out resuming US combat operations after the elections.
Traders currently see a 78% chance that the Fed will raise rates in December, according to CME’s FedWatch tool. Higher interest rates increase the opportunity cost of holding non-yielding bullion, reducing its appeal to investors.
Markets now await the US non-farm payrolls report due on Friday.
“$4,000 is the obvious resistance level — and a break (on) either side of that range could dictate gold’s next decent move,” said Matt Simpson, senior market analyst at StoneX.
India’s gold demand is expected to fall to a six-year low in 2026, as elevated prices weigh on jewellery sales and investment demand moderates, the World Gold Council (WGC) said on Tuesday.
Among other metals, spot silver fell 1.3% to $49.12 per ounce, platinum slipped 1.9% to $1,389.54 and palladium dropped 0.6% to $928.23.
(Reporting by Sukanya Mitra in Bengaluru; Editing by Subhranshu Sahu and Janane Venkatraman)
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