Gold Prices Surge Above $4,000 After US Midterm Elections

Gold prices climbed more than 6% this week, reversing a two-month decline to move back above the $4,000 mark. This rebound follows a sweeping victory for the Democratic Party in the United States midterm elections, an outcome that pressured Treasury yields and the US dollar.

Despite the recovery, gold faces technical resistance between $4,200 and $4,220, the level of the 100-day moving average. Analysts indicate that a break above this range is necessary for prices to move toward $4,300 or the 200-day moving average at $4,468.

Market sentiment remains volatile due to several overlapping factors. Investors are weighing uncertainty regarding US fiscal spending and Federal Reserve outlooks alongside the ongoing war between the United States and Iran.