Gold falls 0.5% on November 3 as dollar and yields rise
Investors await US midterm results for fiscal policy clues, while markets price a 79% chance of a Federal Reserve interest-rate rise in December.
- Spot gold prices fell by 0.5% on November 3.
- The decline was primarily driven by a stronger U.S. dollar and an increase in Treasury yields, which put pressure on the metal.
- Market expectations of a probable December interest rate hike by the US Federal Reserve contributed to the strength in the dollar and yields.
- Investor uncertainty surrounding the US midterm election results also weighed on gold prices.
Global spot gold fell 0.5% to US$3,927.18 an ounce on November 3, 2026, as a stronger US dollar and higher Treasury yields put renewed pressure on the metal while investors awaited US midterm election results. The price was quoted at 2.06pm Eastern Time, or 7.06pm GMT.
US gold futures for December delivery settled 0.7% lower at US$3,940.40 an ounce.
Other precious metals also declined. Spot silver lost 1.9% to US$49.69 an ounce, platinum fell 1.9% to US$1,421.18 and palladium dropped 3.4% to US$935.73.
Dollar and Treasury yields outweigh gold’s brief recovery
Spot gold had earlier fallen 1% to an intraday low of US$3,893.31 before briefly recovering as cheaper oil eased some inflation concerns. The recovery subsequently gave way to renewed losses.
Oil prices reached a three-week low as traders assessed the prospects of negotiations ending the wars in Ukraine and Iran against the risk that recent attacks in both conflicts could cause further supply disruptions.
The US dollar edged higher as investors weighed uncertainty surrounding a possible US–Iran agreement and the midterm election outcome. US Treasury yields also rose slightly.
“The dollar has been strengthening, and yields are going higher,” said Phillip Streible, chief market strategist at Blue Line Futures, identifying the pressures weighing on gold.
US rate expectations and midterms shape gold outlook
A modest easing in expectations of an interest-rate increase offered some support to gold, which pays no interest. Nevertheless, markets still assigned a 79% probability to a December rate rise by the US Federal Reserve, according to CME’s FedWatch tool.
Investors were watching the November 3 US midterm elections for indications of the direction of fiscal policy. Opinion polls and independent analysts generally favoured Democrats regaining the House of Representatives from Republicans, while control of the Senate remained uncertain.
“A Democratic sweep of both chambers could put pressure on the US dollar because it would make it harder for the administration to pass legislation, including measures concerning the debt ceiling,” said Fawad Razaqzada, a market analyst at FOREX.com. “A weaker dollar is one channel through which gold could find support.”
The World Gold Council reduced its forecast for growth in gold investment demand in 2026 to 200 tonnes from its previous estimate of 400 tonnes. However, the council raised its forecast for gold purchases by central banks.
