Precious Metals Surge as US Dollar Falters

Gold and silver prices registered strong gains, with gold reclaiming the $4,000 mark and silver rallying to the $52.00 level. The surge in precious metals was primarily attributed to a broad-based decline in the US Dollar and lower US Treasury yields. This market reaction followed the results of the US midterm elections, which were seen as a key driver for the day's price action.

US Midterm Election Outcome Weighs on Greenback

The US Dollar weakened significantly against a basket of major currencies after the Democratic party secured control of both houses of Congress in the midterm elections. The political shift weighed on the greenback, contributing to notable strength in currencies such as the British Pound and the Euro. While the dollar pared some initial losses, it remained broadly weaker throughout the session.

Global Central Banks Pursue Divergent Paths

Divergent monetary policies among global central banks provided a key backdrop for currency markets, influencing precious metal valuations through cross-currency movements. The Swedish Riksbank hiked rates and signaled further tightening, while hawkish sentiment grew around the Swiss National Bank due to an inflation surprise. In contrast, the Reserve Bank of Australia softened its future guidance despite a rate increase, while Eurozone inflation data came in higher as anticipated.