US Election Results Weaken Dollar, Boosting Gold

The US Dollar Index fell sharply, hitting its lowest levels since late September, after results showed the Democratic party winning control of both the House and the Senate. This political outcome triggered broad-based dollar selling, providing a significant tailwind for dollar-denominated commodities. As a result, gold prices pushed higher, trading comfortably above the $4,000 mark amid the pronounced weakness in the US currency.

Silver Reverses Sharply Higher on Political Shift

Silver prices saw a dramatic intraday reversal, initially trading near one-year lows before surging on the US political news. Following the confirmation of the election results, the white metal rallied almost 4% to trade near $51.85. This vertical price move was attributed to the changed political landscape and the corresponding fall in the US Dollar.

Middle East Tensions Rise Near Strait of Hormuz

Geopolitical risk factors emerged as Iran's Islamic Revolutionary Guard Corps (IRGC) reported that four oil tankers were destroyed by naval mines. The incident allegedly occurred while the vessels were traversing a prohibited route south of the strategic Strait of Hormuz.