{"id":74181,"date":"2026-11-05T02:08:13","date_gmt":"2026-11-05T06:08:13","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-dollar-slumps-to-monthly-lows-as-democrats-sweep-midterms-gold-surges-past-4100\/74181\/"},"modified":"2026-11-05T02:08:13","modified_gmt":"2026-11-05T06:08:13","slug":"us-dollar-slumps-to-monthly-lows-as-democrats-sweep-midterms-gold-surges-past-4100","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-dollar-slumps-to-monthly-lows-as-democrats-sweep-midterms-gold-surges-past-4100\/74181\/","title":{"rendered":"US Dollar Slumps to Monthly Lows as Democrats Sweep Midterms; Gold Surges Past $4,100"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The US Dollar Index (DXY) tumbled to monthly lows near 101.00<\/strong> following a projected Democratic sweep in the US midterm elections, handing them control of both the House and Senate.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> surged past $4,100 per ounce<\/strong>, marking a two-week peak as falling Treasury yields and a weakening greenback fueled a massive recovery in precious metals.<\/li>\n<li><strong>The Bank of England (BoE) is widely expected to raise interest rates to 4.00%<\/strong> today, supporting a bullish bias for the GBP\/USD pair which currently trades near 1.3490.<\/li>\n<li><strong>Russia&#39;s private sector growth stalled in October<\/strong>, with the S&amp;P Global Composite PMI falling to 50.0, signaling a halt in expansion as services activity cooled significantly.<\/li>\n<li><strong>Geopolitical tensions escalated in the Black Sea<\/strong> after the Russian military claimed a successful strike on a cargo vessel allegedly transporting military equipment for Ukraine.<\/li>\n<\/ul>\n<h2>US Midterm &quot;Blue Sweep&quot; Triggers Dollar Sell-Off<\/h2>\n<p>The <strong>US Dollar Index (DXY)<\/strong> faced significant downward pressure, sliding toward the <strong>101.00<\/strong> level as early results from the 2026 midterm elections indicated a &quot;blue sweep.&quot; Democrats have reportedly secured control of both the <strong>House of Representatives<\/strong> and the <strong>Senate<\/strong>, a development that markets interpret as a potential check on the current administration&#39;s fiscal and trade policies.<\/p>\n<p>The political shift has led to a sharp decline in <strong>US Treasury yields<\/strong>, with the 10-year note dropping as investors recalibrate expectations for government spending and inflation. <em>Analysts suggest that a divided government or Democratic control may lead to political gridlock, potentially slowing the pace of future tax cuts and fiscal expansion.<\/em><\/p>\n<h2>Gold Reclaims $4,100 Amid Risk-On Sentiment<\/h2>\n<p>Benefiting from the dollar&#39;s retreat, <strong>Gold (XAU\/USD)<\/strong> prices extended their post-election rally, surging over 3% to break through the <strong>$4,100<\/strong> per ounce threshold. The precious metal hit a two-week high during Asian trading hours on Thursday, supported by a broader &quot;risk-on&quot; sentiment and a significant correction in crude <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a>, which eased immediate inflation fears.<\/p>\n<p><a href=\"https:\/\/stockmarketwatch.com\/metal\/silver\" data-internallinksmanager029f6b8e52c=\"5\" title=\"silver price today\">Silver<\/a> also saw impressive gains, reclaiming the <strong>$50<\/strong> mark. <em>The combination of lower borrowing costs and a softer greenback has made bullion more attractive to international buyers, though some traders remain cautious ahead of Friday&#39;s Nonfarm Payrolls (NFP) report.<\/em><\/p>\n<h2>Sterling Bullish Ahead of Bank of England Decision<\/h2>\n<p>The <strong>British Pound (GBP\/USD)<\/strong> maintained its bullish momentum, trading near <strong>1.3490<\/strong> as investors look toward the <strong>Bank of England&#39;s<\/strong> policy announcement scheduled for later today. Markets have almost fully priced in a <strong>25-basis point hike<\/strong>, which would bring the Bank Rate to <strong>4.00%<\/strong>, the first increase since August 2023.<\/p>\n<p>Technical indicators for the pair remain constructive, with the price holding above the <strong>100-day Simple Moving Average (SMA)<\/strong>. While the <strong>UK Services PMI<\/strong> was revised slightly lower to <strong>52.8<\/strong> for October, the focus remains squarely on the BoE\u2019s forward guidance and whether this hike marks the start of a sustained tightening cycle.<\/p>\n<h2>Russian Economy Stagnates; Black Sea Tensions Rise<\/h2>\n<p>Economic data from Russia revealed a sharp slowdown in private sector activity. The <strong>S&amp;P Global Russia Services PMI<\/strong> fell to <strong>50.1<\/strong> in October from 51.3 in September, barely remaining in expansion territory. This dragged the <strong>Composite PMI<\/strong> down to the <strong>50.0<\/strong> &quot;no-change&quot; mark, indicating that the Russian economy has reached a standstill at the start of the fourth quarter.<\/p>\n<p>Simultaneously, the Russian Defense Ministry reported a strike on a dry cargo ship in the <strong>Black Sea<\/strong>, claiming the vessel was carrying military supplies for Ukrainian forces. This incident follows a series of drone attacks in the region that have increasingly threatened commercial shipping lanes near NATO members <strong>Romania<\/strong> and <strong>Bulgaria<\/strong>, further complicating the global maritime security outlook.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The US Dollar Index (DXY) tumbled to monthly lows near 101.00 following a projected Democratic sweep in the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[5012],"tags":[3716,4306,5129,5425,11375,19451,20104,22192,22405],"class_list":["post-74181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","tag-nfp","tag-dxy","tag-gbp-usd","tag-bank-of-england","tag-sma","tag-gold-xau-usd","tag-us-dollar-dxy","tag-russia-pmi","tag-midterm-elections-2026"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/74181","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=74181"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/74181\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50383"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=74181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=74181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=74181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}