On November 6, international gold prices fell during Asian trading hours as the U.S. dollar rebounded from its post-midterm-election slide, causing bullion to surrender some of its earlier gains. At the same time, continued selling in U.S. technology stocks added further liquidity pressure on the gold market.
As of 14:24 Beijing time, spot gold was down 1.11% at $4,043.46 per ounce, while U.S. gold futures dropped 1.5% to $4,051.25 per ounce. Other precious metals also moved lower in tandem, with spot silver falling 0.5% to $51.5215 per ounce, platinum declining 0.6% to $1,510.78 per ounce, and palladium shedding 0.9% to $1,025.70 per ounce. The following are the market highlights:
Dollar Rebounds from Post-Election Slump, Gold Still Up More Than 5% This Week
After the Democratic Party won control of both chambers of Congress in the midterm elections, the market reassessed the outlook for U.S. fiscal policy, driving the dollar and U.S. Treasury yields persistently lower, with gold posting a cumulative weekly gain of more than 5%. However, the dollar staged a rebound on Friday, with the dollar index rising 0.2% to 101.80 as of the time of writing, eroding gold's appeal to holders of non-dollar currencies. Meanwhile, U.S. Treasuries attracted safe-haven inflows, with yields falling to their lowest level since early September.
Analysts at ANZ noted that Democratic control of Congress could limit the Trump administration's ability to expand fiscal spending, and related expectations have pushed Treasury yields lower. However, a smaller scale of government borrowing could also weaken an important supporting factor for gold demand.
U.S. Tech Stocks Continue to Plunge, Gold Faces Liquidity-Driven Selling Risk
U.S. stock markets remained under pressure, with technology stocks falling for a third consecutive session on Friday. The market is concerned that Democratic control of Congress could lead to tighter regulation of AI companies, especially as public opposition to data center expansion grows, and related policies could restrict the growth of AI infrastructure investment. The sharp decline in tech stocks has also placed additional pressure on gold. As investors face losses in other assets, gold may be sold off to meet margin calls or offset portfolio losses.
Global Central Bank Gold Buying Remains Strong, Market Awaits U.S. Nonfarm Payrolls Data
Despite short-term pressure on gold prices, physical gold purchase demand from global central banks remains robust. ANZ noted that global central banks added a net 321 tons of gold in the third quarter of this year, the fastest pace of accumulation since the end of 2024, driven mainly by geopolitical risks and concerns over fiscal discipline. Investors will next focus on the U.S. October nonfarm payrolls report due on Friday to gauge U.S. economic growth and the future path of interest rates. The employment data will provide an important reference for the market in assessing the Federal Reserve's next monetary policy move.
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