Gold Rebounds Above $4,000 in Post-Election Market Rally

Gold rose nearly 3% in early Wednesday trading, initially reacting to the Democratic Party’s victory in the U.S. midterm elections.

Growing uncertainty over political action after Democrats regained control of the U.S. Congress, along with concerns about the fiscal outlook, prompted dollar selling and revived gold’s safe-haven appeal.

Traders were also assessing the potential for stronger Democratic oversight and regulation of the currently turbulent AI sector, which could negatively affect economic growth. Attention shifted to another key event of the week: the release of the October nonfarm payrolls data.

The rebound from a new low at $3,870—the lowest since late September 2025—extended into its third consecutive day and accelerated back above the $4,000 mark on Wednesday, generating an initial bullish signal.

A close above $4,000 is needed to validate the initial signal and keep near-term action biased higher. Still, the situation on the daily chart remains fragile, with the technical picture predominantly in a bearish configuration, north-facing 14-day momentum still in negative territory, and most moving averages remaining above price.

Fresh bulls encountered an immediate resistance zone at $4,049 (the daily Kijun-sen), ahead of $4,065/75 (the 23.6% Fibonacci retracement of the $4,697/$3,870 decline) and $4,100 (a round figure). A break above the latter could provide relief and open the way for a stronger recovery toward $4,186 (the 38.2% Fibonacci level) and $4,203 (the 100-day moving average).

Caution remained around a potential failure near $4,065/75, which could keep downside risks elevated, while a return and close below $4,000 would signal the end of the recovery and bring larger bears back into play.

Res: 4065; 4083; 4100; 4155
Sup: 4000; 3975; 3942; 3900

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