Gold financier companies' stocks like Muthoot Finance, Manappuram, IIFL Finance rose up to 8% on November 4 after gold prices rose over 2%, bolstered by a weaker US dollar after Democrats seized control of both the Senate and House in US midterm elections, while investors await non-farm payrolls data for clues to the Federal Reserve's policy path.
Bullion advanced as much as 2.5% to near $4,030 an ounce, the biggest intraday rise since August.
"We've seen gold benefit from the fact that yields and the dollar have dropped, and that's because of this opinion that the gridlock that could emerge between the executive and the legislature in the US now could slow the amount of spending in the US," said Kyle Rodda, senior financial market analyst at Capital.com.
“Gold is gaining some momentum as markets assess whether a strong Democratic showing could limit Trump’s fiscal agenda and temper expectations of further fiscal expansion,” said Christopher Wong, a strategist at Oversea-Chinese Banking Corp.
Global stocks slumped, and the dollar hit a one-month low on Wednesday as Democrats scored a decisive win in the US midterm elections, fuelling fears the Democratic sweep could disrupt the data-centre buildout that has powered the AI trade and hurt tech spending.