Gold and Silver Prices Surge Following Trumps Election Loss
Gold and silver prices soar as investors seek safe havens after the U.S. midterm elections revealed weak performance for Trumps party.
New Delhi, November 4 (Daily Kiran) : Precious metals experienced a significant rally on Wednesday, November 4, following a period of pressure. The surge in gold and silver prices was fueled by the results of the U.S. midterm elections, a weakening dollar, easing U.S. bond yields, and global geopolitical uncertainties, prompting investors to seek safer investment options.
In the domestic market, gold for December delivery rose by 2.21 percent, or ₹3,088, reaching a peak of ₹1,42,540 per 10 grams on the Multi Commodity Exchange (MCX). Silver saw an even sharper increase, climbing 3.84 percent, or ₹6,902, to hit ₹1,86,600 per kilogram.
As of the last update, December gold on the MCX was trading at over ₹1,42,300 per 10 grams, reflecting a gain of more than 2 percent. Meanwhile, December silver futures rose by 3.71 percent, trading at ₹1,86,373 per kilogram.
Market analysts noted that the weak performance of President Donald Trump’s party in the midterm elections led investors to pivot toward safe investments. The Democratic Party gained a foothold in both the Senate and the House of Representatives, sparking discussions about new political possibilities in global markets.
Analysts believe that the election results contributed to dollar weakness and a decline in U.S. bond yields, providing additional support for gold. Typically, a weaker dollar and lower bond yields make non-yielding assets like gold more attractive.
Additionally, easing crude oil prices have alleviated inflation concerns, raising hopes that central banks may show some flexibility in monetary policy. Gold tends to perform well in such environments.
In international markets, gold on COMEX rose by 2.32 percent, trading at $4,031.90 per ounce, while silver climbed 4.10 percent to $51.795 per ounce.
Attention is also focused on global geopolitical developments. Russia has expressed willingness to engage in trilateral peace talks with Ukraine and the U.S., while uncertainty persists in negotiations between Iran and the U.S. In this climate, investors are prioritizing gold as a safe haven.
Technical analysis indicates that the first significant resistance level for MCX gold is around ₹1.41 lakh, with the next resistance zone between ₹1,43,000 and ₹1,43,700. Immediate support is seen at ₹1,40,000, followed by a support band between ₹1,37,500 and ₹1,38,300.
Experts caution that despite the recovery, momentum indicators remain weak. The Relative Strength Index (RSI) hovers around 35, and the MACD histogram remains negative and continues to rise, indicating a lack of solid improvement in the technical structure.
For silver, immediate resistance is seen between ₹1,86,000 and ₹1,88,000. If prices remain above this band, it could pave the way towards the next resistance zone of ₹1,94,000 to ₹1,96,000. On the downside, the ₹1,78,000 to ₹1,80,000 range serves as immediate support, with the next support zone at ₹1,70,000 to ₹1,72,000.
Experts suggest that the future interest rate policy of the U.S. Federal Reserve, the dollar index, and the global political landscape will determine the direction of gold and silver prices in the coming days.
