Gold prices maintained their upward momentum, staying above the $4,000 mark after a significant rally. The surge came in response to a Democratic victory in the US midterm elections, which triggered a decline in the dollar and Treasury yields, making gold more attractive to investors.
Bullion was trading near $4,070 an ounce, following a 3.3% jump in the previous session. The rally marked gold's largest gain since August, driven by shifting market dynamics following the election results.
Treasury yields dropped across the board on Wednesday as Democrats secured control of both chambers of Congress. Meanwhile, a key gauge of the US dollar weakened by 0.4%, its steepest decline in two months, further supporting gold's appeal.