Gold prices rose 2% on Wednesday, supported by a weaker US dollar after Democrats secured key victories in midterm elections, while investors looked ahead to non-farm payrolls data later this week for clues on the Federal Reserve's policy path. Spot gold climbed 2.2% to $4,016.01 per ounce by 0619 GMT, while US gold futures for December delivery rose 2.2% to $4,026.90. "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. Global stocks slumped, and the dollar softened on Wednesday as Democrats scored a decisive win in the US midterm elections. A softer dollar makes greenback-priced bullion more affordable for buyers overseas. 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 79% 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 gained 3.8% to $51.67, platinum 2.8% to $1,455.71 and palladium climbed 3.8% to $969.49.
