US Midterm Elections See Gold and Silver Try to Rebound Again

GOLD rebounded again on Tuesday, repeating yesterday's rally to $3969 per ounce while crude oil prices fell further, long-term interest rates edged higher from 2-month lows and global stock markets slipped for the 5th session running as US voters went to the polls for the mid-term elections.

Silver also rallied again but less strongly, failing to hold the $50 per troy ounce level after touching a new 2026 low beneath $49 overnight.

With today bringing the vote in US midterms, the price of gold had fallen back below $3900 per ounce during Asian trade, and like silver it also eased back after rebounding once more, trading at $3945 as New York trading began.

"In the event of dual Democrat Congressional control," says bullion-market analyst Rhona O'Connell at brokerage StoneX, "rates and the Dollar would look lower. Gold should thus find support [as] Democrats restrain the Republican agenda [and] fiscal stimulus.

"[But] tariffs, immigration and the Iran War stay with the White House."

US President Trump last night hailed Monday's $10 drop in crude oil prices as "the biggest drop in history" after Iran said "consultations through mediators" to end the war "are very ⁠intensive."

But with regular gasoline now costing US drivers over 1/3rd more than this time last year as diesel prices rise 70%, odds suggested by so-called 'predictions market' Kalshi today put a 75% chance on the Democrats winning the Senate and 94% chance on Trump's opponents taking the House.

Following Trump's deal with Moscow to allow exports of Russian diesel despite President Putin's continued war on Ukraine, the Kremlin today said a trilateral meeting of the 2 leaders plus China's President Xi is being planned for the APEC economic summit in Shenzhen, China in 2 weeks' time.

Russia's "utterly horrific" attack on an aid distribution centre in east Ukraine city Zaporizhia yesterday killed at last 31, President Zelenskyy said Tuesday.

US forces meantime made "defensive strikes" overnight against Iranian military sites on Qeshm Island in the Strait of Hormuz. Iran said 3 tankers had exploded today after trying to transit the Strait without its permission, hitting naval mines.

Tehran's Houthi allies meanwhile said they attacked Saudi forces in eastern Yemen.

"By the end of this year we won't be paying Israel," said Trump of Washington's $4bn in annual aid.

"Now we'll help Israel if they need it."

The Chinese Yuan today fell from fresh 4.5-year highs on the FX market after the People's Bank of China cut the amount of US Dollars available in the country's banking system by raising the foreign-currency reserves requirements for commercial lenders to try stemming what one analyst called "the momentum behind Yuan appreciation and prevent the market from developing excessive one-way expectations."

New data published Tuesday by the mining industry's World Gold Council says China's household demand for gold bars and coins was greater than gold jewellery demand for the 4th calendar quarter in a row in July-to-September, the longest such stretch on record.