Gold price crashes on Election Day, Silver drops: Will Gold rate fall further after US midterm elections 2026 results?

Gold price slipped during the Election Day on Tuesday, November 3. Spot gold fell 1.1 per cent to $3,903.48 per ounce and US gold futures for December delivery fell 1.4 per cent to $3,913.80 per ounce. This fall from Monday's high comes as investors are keeping on edge ahead of the US midterm elections 2026. Gold rate gained as much as 2 per cent in the previous session.

Spot silver was down 3.3 per cent to $48.96 per ounce, platinum fell 1.9 per cent to $1,421.43 and palladium dropped 3.1 per cent to $939.41.

Gold Rate Prediction


World Gold Council has cut its forecast for growth in gold investment this year to 200 metric tons from 400 tons estimated previously, citing weaker appetite for bars and coins. It, however, raised its estimate for central bank purchases, Reuters reported.

Crucial midterm elections, meanwhile, were underway in the US. A Democratic sweep would likely prove more problematic for the AI data centre build-out and the broader tech trade, said Tim Waterer, chief market analyst at KCM Trade.

Any further pressure on the tech complex from increased regulatory scrutiny could spill over into gold as positions continue to be cut to cover losses elsewhere, Tim Waterer said.

Why is Gold Price Down?

Higher oil prices tend to put inflationary pressures up, and with inflationary pressures up, rate expectations tend to drift higher and that's negative for gold, said Nitesh Shah, commodity strategist at WisdomTree.

Higher interest rates increase the opportunity cost of holding non-yielding gold. Traders currently see a 76 per cent chance that the US Federal Reserve will raise rates in December, according to CME's FedWatch tool.

Oil prices rebounded on Tuesday after a steep selloff in the previous session, as an Iranian official said Tehran and Washington remained far from a deal to end the war and the US struck Iran's Qeshm Island.

Gold prices witnessed a sharp decline as traders continued to book profits, keeping bullion under pressure, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities told PTI. The sell-off has pushed prices closer to oversold territory, although a sustained recovery will depend on fresh buying interest and global cues, he added.

Investors are awaiting key US developments, including the election outcome later in the day, unemployment figures and nonfarm payrolls data, which could offer fresh clues on the Federal Reserve's future policy stance, Trivedi said.