Gold Surpasses $4,100, Reaching a Two-Week High, Supported by a Weakening Dollar

Gold prices continued to rise during trading on Thursday, hitting their highest levels in more than two weeks, supported by the continued decline of the U.S. dollar and falling Treasury yields, following the Democrats’ significant gains in the U.S. midterm elections, which bolstered market hopes that tensions between the United States and Iran could ease and an agreement to end the war could be reached.

The price of gold has now risen by more than 1.5% to reach $4,120 per ounce, following a 3.4% gain during Wednesday’s session—its largest daily gain since last August.

Gold benefited from the U.S. dollar’s decline to its lowest levels since late September, along with a decline in U.S. Treasury yields, which boosted the precious metal’s appeal to investors, especially as inflation concerns eased due to lower oil prices.

A Weaker Dollar and Lower Bond Yields Support Rising Gold Prices

The weakness of the U.S. dollar was one of the key factors supporting gold’s gains during Thursday’s trading, as the decline in the U.S. currency made the precious metal less expensive for buyers holding other currencies, thereby boosting demand for it in global markets.

The decline in U.S. Treasury yields also helped support gold prices, given the inverse relationship between bond yields and the appeal of gold, which does not generate a yield.

The decline in the dollar and bond yields followed the results of the U.S. midterm elections, in which Democrats made significant gains, raising expectations of increased political constraints on President Donald Trump’s administration, particularly regarding government spending and foreign policy.

Gold could target levels of $4,200 and then $4,400 per ounce.

U.S. Midterm Election Results Boost Gold as Oil Prices Fall

The results of the U.S. midterm elections helped bolster gold’s gains, after raising hopes for a potential shift in U.S. policy toward the war with Iran.

Senate Minority Leader Chuck Schumer pledged to work toward ending the war, noting that his party could use its control over government funding to exert pressure toward achieving this goal.

These developments reinforced expectations that the likelihood of military escalation is diminishing, which was reflected in the energy markets, where oil prices continued to fall for the fourth consecutive session amid expectations of a potential political settlement between Washington and Tehran.

The decline in oil prices has eased inflation concerns, as the likelihood of continued pressure on energy prices has diminished, which may reduce the need to keep interest rates high for a longer period.

Gold prices are benefiting from these developments, as declining inflation expectations and pressure on interest rates—along with falling bond yields—boost the appeal of gold as a leading safe-haven investment.

Gold Price Outlook Awaits U.S. Jobs Data

Despite gold’s strong gains, expectations regarding U.S. monetary policy remain one of the key factors that could determine the precious metal’s direction in the coming period.

U.S. private-sector jobs data showed an increase of 86,000 jobs in October 2026, which was in line with the revised reading for the previous month.

Investors are awaiting the release of the U.S. Nonfarm Payrolls (NFP) report on Friday for further indications regarding the strength of the labor market and the Federal Reserve’s monetary policy trends.

Meanwhile, markets continue to anticipate a tightening of U.S. monetary policy, with the CME Group’s tool indicating that the probability of a U.S. interest rate hike in December has exceeded 80%.

Bullish Outlook for Gold Prices in the Coming Period

Amid gold’s recent outperformance, Citibank (Citi) has set a price target for the precious metal at $4,500 per ounce over the next three months, noting that there is potential for further gains should geopolitical tensions ease and the Strait of Hormuz reopen.

This scenario is linked to the prospects of improved conditions in the Middle East and a reduction in the risks that have affected global energy and trade markets.

Overall, gold’s movements in the coming period will continue to be driven by three key factors: the trajectory of the U.S. dollar and bond yields; U.S. labor market data and the Federal Reserve’s policy stance; and developments in the conflict with Iran and their impact on oil prices and inflation.