Gold climbs to two-week high as dollar weakens and oil prices tumble

Gold prices continued their rally after the U.S. midterm elections, reaching a two-week high of $4,134.82 per ounce by 1117 GMT on Thursday. The rise followed a session peak of $4,146.63, a level not seen since October 2026. Spot gold was up 1.9%, while December U.S. gold futures gained 1.8% to $4,145.10 per ounce.

"Precious metals have emerged as major winners following the US elections," said Ole Hansen, head of commodity strategy at Saxo Bank. "The powerful combination of falling energy prices, easing inflation and interest-rate concerns, and declining Treasury yields and the dollar has forced recently established speculative shorts to cover," he added.

The advance was supported by a weaker dollar and lower Treasury yields, both at multi-week lows, as well as a sharp decline in oil prices that eased inflation worries. Brent crude, after falling nearly 9% on Wednesday, stayed below $100 a barrel on Thursday.

Traders see a 79% probability that the Federal Reserve will raise rates in December, according to CME's FedWatch tool, and are awaiting the U.S. non-farm payrolls report for further guidance. In the United Kingdom, the Bank of England is expected to lift rates for the first time in three years on Thursday.

Other precious metals also rose, with spot silver up 1.3% to $52.88 per ounce, platinum gaining 1.8% to $1,523.51, and palladium climbing 2.8% to $1,033.25. In Thailand, domestic gold prices jumped, with 96.5% purity bars priced at 65,250 baht and gold jewellery at 66,050 baht per baht-weight.