Spot gold climbed as much as 2.5% to roughly US$4,030 per ounce in intraday trading on Wednesday (4/11), according to Stockbit Snips, pushing the metal back above the US$4,000 mark. The move followed the Democratic Party's victory in the US midterm elections, which gave it control of both the House of Representatives and the Senate.
Stockbit Snips reports that the gain was the largest single-session rise since August 2026 and represented a rebound of about 3.9% from this year's low of US$3,870/oz, touched on 30 October 2026.
Why it matters
The shift in control of Congress changes how markets price US fiscal policy. According to Stockbit Snips, investors now expect a Democratic-controlled legislature to constrain President Donald Trump's fiscal agenda, which in turn reduces the expected need for new government debt issuance.
That view fed directly into bond and currency markets, and gold — which pays no yield — was the immediate beneficiary. The rally matters beyond the metal itself: it lifted most gold miners listed on the Indonesia Stock Exchange the same day, giving local investors a direct stake in the outcome of a US election.
Yields fall, dollar slips to one-month low
The clearest transmission channel ran through government bonds. The yield on 10-year US Treasuries briefly dropped 7 basis points to 4.89% on Wednesday, Stockbit Snips reports.
The dollar moved in the same direction. The US Dollar Index (DXY) fell to a one-month low of 101.41 that day. According to Stockbit Snips, part of the pressure came from concerns that tighter regulation of artificial intelligence could slow the US economy, since American growth is closely tied to AI-related spending, potentially reducing demand for the dollar.
Lower yields support gold because the metal offers no interest income, making it relatively more attractive when returns on bonds decline. A softer dollar adds a second push, since gold is priced in dollars and becomes cheaper for buyers holding other currencies.
The rebound follows a difficult October. Stockbit Snips notes that gold fell almost 7% over the month and briefly traded below US$4,000/oz at the end of October, weighed down by expectations of Federal Reserve rate hikes as US inflation heated up again and Brent crude traded around US$117 per barrel.
Despite Wednesday's jump, the metal remains down about 6.9% year to date and roughly 28% below its record high of US$5,595/oz set on 28 January 2026, according to Stockbit Snips.
Indonesian gold stocks mostly rise, copper names lag
The rally carried over to Jakarta. Stockbit Snips reports that shares of gold producers on the Indonesia Stock Exchange were broadly stronger on Wednesday: $ANTM gained 8.33%, $ARCI rose 6.75%, $PSAB added 3.57% and $EMAS climbed 2.91%. $BRMS bucked the trend with a 6.67% decline.
Copper-linked names moved the other way as the base metal slipped. $AMMN fell 1.46% and $MDKA lost 0.27%, in line with a drop of as much as 1.5% in copper prices the same day, Stockbit Snips reports.
What to watch next
Stockbit Snips expects gold to stay volatile and sees two factors driving it from here. The first is US inflation data and the direction of Federal Reserve policy, after the central bank held rates steady at its October 2026 meeting. The second is the progress of US–Iran negotiations. Brent crude has already eased from about US$117 per barrel in late October to around US$104 per barrel, though the threat of a US strike on Iran after the midterms still hangs over the market, according to Stockbit Snips.
Investors will be watching whether the dollar's slide and the drop in Treasury yields extend into the coming sessions, and whether the Fed's next signals on inflation and rates confirm or reverse the move in gold.
