Midterm Democrat Gains Support Metals (11.04.2026)

Early US midterm results pointed to Democrat gains, raising prospects of a divided government, political gridlock, reduced spending, and tighter AI regulations. Fiscal uncertainty weakened the dollar, supporting major currencies and precious metals. However, the S&P 500 has risen one year after every midterm since 1946, suggesting limited long-term market impact.

The dollar index fell below 101.5 on Wednesday, its weakest level in five weeks. Gold climbed above $4,000, while silver advanced past $51 as declining oil prices eased inflation concerns. Meanwhile, the euro recovered toward 1.1250 despite persistent French fiscal risks and weak Eurozone growth. Sterling strengthened toward 1.3480 ahead of an anticipated Bank of England rate hike, while the yen gained ground near 157.5 per dollar amid renewed safe-haven demand. Investors now await Friday's US employment report, with expectations for a December Federal Reserve rate increase remaining elevated.

EUR/USD Rebounds Toward 1.1250

EUR/USD advanced toward 1.1250 on Wednesday, recovering strongly from multi-month lows as US midterm election uncertainty weighed on the dollar. Lower Brent crude prices eased inflation fears and pulled Treasury yields down. However, medium-term euro upside remains capped by the Federal Reserve's higher-for-longer stance, sluggish Eurozone economic expansion, and Fitch's negative credit outlook on France.

The first resistance is positioned at 1.1280 while the support starts from 1.1200.

Gold Reclaims $4,000 Level

Gold rose slightly above $4000 an ounce on Wednesday as investors digested early US midterm election results and ongoing Middle East diplomatic developments. Early Democrat gains introduced fiscal policy uncertainty, while declining crude oil prices eased broader inflation concerns to support the metal. Nevertheless, markets continue to price in roughly a 78% probability of a Federal Reserve rate hike in December.

First resistance is seen at $4,080, with initial support near $4,010.

Yen Strengthens Toward 157.5 Level

The Japanese yen firmed toward 157.5 per dollar on Wednesday, ending a two-day losing streak as the dollar weakened following early poll results pointing toward a potential Democrat sweep. Safe-haven demand expanded alongside renewed selling pressure in tech and AI stocks. Investors now turn their focus to Japanese wage data following the Bank of Japan's rate hold at 1.25% and December hike indications.

First resistance is seen at 158.00, with initial support near 157.20.

Pound Tests 1.3480 Ahead of BoE Decision

GBP/USD rose toward 1.3480 on Wednesday, reaching a key resistance level as the US dollar weakened amid midterm election uncertainty. Early poll results showing Democrat gains prompted traders to trim long dollar positions. Sterling gained additional support ahead of Thursday's Bank of England decision, where a rate hike to 4% is widely anticipated, preceding Friday's US payrolls report.

From a technical view, resistance stands near 1.3500, with support around 1.3410.

Silver Goes Past the $51 Level

Silver advanced past $51 per ounce on Wednesday, rebounding from recent losses as investors tracked Middle East diplomacy and US midterm election results. Early Democrat gains heightened fiscal policy uncertainty. Softer crude oil prices near four-week lows tempered inflation fears to support the metal, though markets maintain a 78% chance of a December Fed rate hike.

From a technical view, resistance stands near $52.00, while support is located around $50.50.