Gold Surpasses $4000 Amid Dollar Decline

On November 4, 2026, gold rose by more than 2.5% and during trading approached $4040 per troy ounce. Silver added more than 4%, rising to nearly $52. The increase occurred against the backdrop of a weakening dollar and a decline in U.S. government bond yields following the U.S. midterm elections.

What Supported Gold Prices

According to Reuters, after both houses of Congress came under Democratic control, investors began to reassess expectations for U.S. fiscal policy. Some market participants suggest that the division of power between Congress and the White House will limit the adoption of new large-scale expenditures. This is a market interpretation, not a guaranteed election outcome.

Against this backdrop, the dollar weakened, and Treasury yields fell. Both factors are important for gold: with a weaker dollar, the metal is cheaper for buyers with other currencies, and a decline in yields reduces the relative attractiveness of interest-bearing instruments. However, further rate hikes by the Fed could again put pressure on prices.

The recovery was preceded by a sharp decline. On October 30, spot gold finished trading around $3875 per ounce. For the month, the metal lost about 6%, showing the worst October result since 2008. This comparison refers to the monthly decline, not the absolute price of gold.

Additional support for the market comes from central bank demand. According to a World Gold Council report on November 3, in the III quarter, they purchased 321 tons of gold, 42% more than a year earlier. Meanwhile, gold-backed exchange-traded funds attracted another 211 tons for the quarter. These data reflect longer-term flows and do not in themselves explain the one-day price jump.

What to Watch Next

The $4000 mark remains an important psychological benchmark, but staying above it is not guaranteed. To assess the sustainability of the rise, it is necessary to consider the dynamics of the dollar, bond yields, and expectations for Fed decisions. If these factors change, the price of gold may fall below the round level again, despite steady demand from central banks.