​Gold and silver prices jumped on Wednesday as election results pointed to major victories for the Democratic Party in the U.S. midterm elections.

​This continues a strong trend from 2025, a year in which gold prices rose by 66% and silver prices surged by 135%.

​Gold: Rose 3.4% to reach $4,073 per ounce.

​Silver: Rose 5.1% to reach $52.28 per ounce.

​The main driver was the outcome of the U.S. midterm elections. As votes were counted, projections showed that Democrats won control of the House of Representatives and took over several state governor positions.

​Here is how other major financial markets reacted to the news:

​U.S. Stocks: Rose as political uncertainty decreased.

​U.S. Dollar: Fell by about 0.3%.

​Treasury Yields (Interest Rates): Moved lower.

​Oil Prices: Went down.

Democratic win in Congress creates financial support for gold because it puts downward pressure on the U.S. dollar and interest rates.

A divided government often leads to political arguments over government budgets, creating economic uncertainty. At the same time, global issues like the war involving Iran and a weaker U.S. dollar are competing against the Federal Reserve’s effort to raise interest rates.

​In short, less government spending usually means lower long-term interest rates and a weaker dollar, which makes precious metals like gold and silver more attractive to investors.