Precious metals rise boosted by a weaker dollar and declining US Treasury yields

After the Democratic Party's comprehensive victory in the US midterm elections, Ole S. Hansen, Head of Commodity Strategy at Saxo Bank, stated that among various assets, precious metals are undoubtedly the biggest winners from this election result. Boosted by a weakening US dollar and declining US Treasury yields, both gold and silver prices have risen. Since touching a high near $5,600 per ounce at the end of January, gold has been on a significant downward trend. However, Hansen noted that gold prices may now begin to challenge this downward trend. In October, gold prices briefly fell below $4,000 per ounce, but have recovered overnight, currently trading at $4,043 per ounce, with a gain of nearly 3%. Hansen believes that short covering could further strengthen the upward momentum of gold prices. If the market believes the Democratic Party will restrict Trump's ability to further expand fiscal spending, declining US Treasury yields will increase the attractiveness of non-yielding assets such as gold. Silver prices have also risen about 4%, reaching $52 per ounce. However, copper prices have only risen slightly so far. Hansen pointed out that due to more constraints on Trump's policy actions, the likelihood of the US imposing additional tariffs on copper imports has decreased.