Gold is back at $4,000. Don't celebrate yet

FXStreet · Ghiles Guezout · 2026-11-04 13:39 UTC

Gold (XAU/USD) stages an impressive recovery on Wednesday, climbing around 3% to trade above $4,000 after the United States (US) midterm elections. The recovery offers some relief after months of selling pressure, but it does not necessarily signal the end of Gold's bearish trend.

Gold (XAU/USD) stages an impressive recovery on Wednesday, climbing around 3% to trade above $4,000 after the United States (US) midterm elections. The recovery offers some relief after months of selling pressure, but it does not necessarily signal the end of Gold's bearish trend. Despite improving market sentiment, restrictive monetary policy expectations and significant technical resistance levels continue to threaten the sustainability of the rebound.

Why the US midterm elections are giving Gold a boost

Gold's recovery accelerated after Democrats secured control of both chambers of the US Congress, raising expectations of political gridlock in Washington and potential constraints on US President Donald Trump's fiscal agenda. Investors anticipate that a divided government could limit additional fiscal stimulus and government borrowing, potentially reducing inflationary pressures and supporting lower Treasury yields.

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