Gold was on track for its biggest weekly gain since August after the US midterm elections sent the dollar and Treasury yields lower. Bullion traded around $4,090 an ounce, advancing more than 5% for the week. The rally was tempered as some investors sold gold to cover losses in equity markets.
US technology stocks plunged on Thursday as traders anticipated a Democratic sweep of Congress would spur a regulatory shift on artificial intelligence. The rout stoked demand for Treasuries as a safe haven, sending yields to the lowest levels since early September. The dollar edged higher, reducing the appeal of gold for non-US investors.
Gold had surged on the midterm results as investors bet that incoming Democrats would push to end the Iran war, boosting energy prices and fueling inflation. Traders also wagered that a divided government would contain President Donald Trump's fiscal agenda and limit spending and borrowing. That could help cool inflation, giving the Federal Reserve more scope to ease monetary policy -- another potential tailwind for gold, which typically benefits from lower interest rates.
Spot gold rose 0.4% to $4,103.84 an ounce at 8:08 a.m. in Singapore, while silver was 0.4% higher at $51.99. Platinum and palladium edged lower. The Bloomberg Dollar Spot Index rose 0.2% in the previous session.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing