(Kitco News) – Gold and silver are continuing to build on last week’s strong rally following the Democratic sweep of the midterm elections, but the precious metals will likely face pressure from resurgent oil prices and elevated Fed rate expectations, according to analysts at Heraeus.
In their latest update, the analysts noted that gold prices saw a sharp rebound last week soon after dropping to a fresh 2026 low.
“Having fallen by more than 15% from its late-August high, the price briefly dropped below $3,900/oz, breaking the June low near $3,950/oz,” they wrote. “The Democrats’ sweep of both houses of Congress then triggered gold’s largest daily gain since August, and the price recovered above $4,000/oz.”
Meanwhile, Brent crude prices fell nearly 9% in a single session on the expectation that the new Democrat-controlled Congress would hasten the end of the Iran war. “However, the conflict is ongoing and Brent prices are already recovering above $95/bbl, and the new Congress does not sit until January,” the analysts said. “Fed policy, meanwhile, remains a headwind: Friday’s non-farm payrolls report came in at 165,000 against expectations of 65,000, strengthening the case for anothe...