Gold Flat After Midterm-Linked Rebound -- Market Talk

0016 GMT - Gold is flat at $4,063/oz in early trade, taking a breather after rebounding as oil slumped and the dollar softened in the wake of the U.S. midterms. The Democrats winning Congress has spurred tentative hopes of Middle East conflict resolution. If oil prices cool sustainably, that could reduce the need to raise interest rates, burnishing the non-interest-bearing metal's appeal. Political gridlock that limits the U.S.'s ability to respond decisively to international crises reinforces the trend of geopolitical fragmentation, benefiting gold, says Bank J. Safra Sarasin's Claudio Wewel. Unlike fiat currencies, gold doesn't represent government liabilities and is largely insulated from concerns about sovereign creditworthiness, political interference and erratic policymaking. That makes it particularly attractive as a reserve asset, and should underpin demand from central banks and institutional investors. (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

November 04, 2026 19:16 ET (00:16 GMT)