Market update as of November 4, 2026. This reflects conditions at the time of writing and is for informational purposes only, not financial advice.
Gold rallied more than 2% on November 4 to trade back above $4,000 an ounce, as the US dollar fell to its lowest level since late September following the midterm election results.
A Rough October
The bounce comes after a difficult month. Spot gold traded around $3,930 on November 3, down about 5% over the previous month, as higher US rates and a firm dollar made the non-yielding metal less attractive. The Fed’s first hike since 2023 in September, and its signal that December remains live, have been a headwind.
Gold also remains far below its record high above $5,000 set in late January 2026, so the bigger trend is still one of consolidation after a very large run.
Why Gold Bounced
Gold is priced in dollars, so a weaker dollar tends to support it. The dollar index slid toward 101.25โ101.50 as markets reacted to Democrats winning control of Congress, and gold moved up as the dollar moved down.
Geopolitical risk is another background factor. Hostilities involving Iran have kept oil prices elevated, with WTI near $95, and that kind of uncertainty has historically supported demand for gold as a safe haven.
What to Watch
- $4,000: The round number gold has just reclaimed. Holding above it would suggest the October sell-off has run its course for now.
- US jobs report (November 6): A strong number could revive December hike bets and the dollar, pressuring gold.
- Fed minutes (November 18): Any sign the committee is more hawkish than expected would be gold-negative.
Gold is one of the most volatile instruments many forex traders follow. Position sizing and stop placement matter more than usual around major data releases.