US Midterm Election Results: Indian stock markets gained, as well as gold and silver prices staged a strong rebound on Wednesday, November 4, after Democrats swept the US midterm elections, dealing a major political setback to President Donald Trump.
The outcome weakened the US dollar and Treasury yields, supporting precious metals, while improving global risk sentiment lifted expectations of stronger foreign investor flows into emerging markets, including India.
On the Multi Commodity Exchange (MCX), gold rose 2.5% to an intraday high of ₹1,42,957 per 10 grams, while silver jumped more than 4% to ₹1,87,422 per kg. Internationally, bullion advanced as much as 2.5% to near $4,030 an ounce, marking its biggest intraday gain since August. Silver climbed as much as 4.1% to just below $52 an ounce.
Democrats won control of both chambers of the US Congress, as voter frustration over the cost of living and the war in Iran triggered a widespread rebuke of Trump and the Republican Party. Markets interpreted the outcome as potentially limiting the administration's ability to pursue a deficit-expanding agenda over the next two years.
US Treasury yields declined across the curve, while the dollar weakened as much as 0.4%, its steepest fall in two months. Lower yields tend to support gold, which does not pay interest, while a weaker dollar makes bullion cheaper for buyers holding other currencies.