Democratic Sweep Sends Gold Higher and the Dollar Lower

Gold price rises on midterm elections as a Democratic sweep of Congress pushes the U.S. dollar and U.S. Treasury yields lower. Fiona Cincotta, StoneX Senior Market Analyst, explains how political uncertainty in Washington is lifting gold and silver, and why the U.S. jobs report is the next major test for the rally. A weaker U.S. dollar makes gold and silver cheaper for international buyers, since both metals are priced in dollars. Falling Treasury yields reduce the opportunity cost of holding gold and silver, which pay no interest. A stronger-than-expected U.S. nonfarm payrolls report tends to cement Federal Reserve rate hike expectations and lift yields and the dollar, while weaker data eases those expectations. That leaves Federal Reserve policy, more than the election result, steering the direction of precious metals. 00:00 - Gold and Silver Surge 00:28 - Midterm Blue Sweep Shakes D.C. 01:27 - Weak Dollar Fuels Gold 01:56 - Fed Policy Holds the Key 02:17 - Payrolls Test Gold's Rally 03:06 - Gold Downtrend Still Intact Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_fiona_cincotta&utm_content=share Like and subscribe for more financial market insights. #Gold #StoneX #FionaCincotta #Silver --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social