US Midterm Election Shock: Can Gold Silver Price Rise Further? MCX Support and Resistance Levels to Watch
The 2026 US Midterm Election results have brought a fresh development for global financial markets. Donald Trump’s Republican Party has lost control of both the House of Representatives and the Senate, giving Democrats control of Congress.
This result has created new questions about the future of Trump’s economic policies and their impact on global markets. Gold and silver have already reacted positively, supported by a weaker US dollar and falling Treasury yields.
However, the important question for investors is whether this rally can continue or whether precious metals could face another correction.
Read Aslo – https://fingossip.com/shriram-finance-share-price-technical-analysis/
Why Are Gold and Silver Rising After Trump’s Election Setback?
The US election result has increased expectations of political disagreement between the White House and Congress. This could make it harder for the Trump administration to implement some of its economic plans.
Following the election result, the US dollar weakened and Treasury yields declined. These two developments supported gold and silver prices.
According to market reports, international gold gained around 3.3% on November 4 and traded near $4,070 per ounce on November 5. Silver also moved higher, trading around $52.36 per ounce after gaining almost 5% in the previous session.
In India, MCX December gold futures gained around 2.08% to reach ₹1,42,353 per 10 grams on November 4. Silver futures also advanced around 3.55% to ₹1,86,081 per kilogram.
These movements show how global political developments can influence precious metal prices. However, an election result alone cannot guarantee a long-term rally.
How Could a Weak Dollar and Falling Bond Yields Support Precious Metals?
The US dollar and Treasury yields are two important factors that influence gold and silver prices.US Dollar and Gold Prices
1. Weak US Dollar
Gold and silver are internationally traded in US dollars. When the dollar weakens, these metals become relatively cheaper for buyers using other currencies.
This can increase international demand and support prices. A weaker dollar can also benefit Indian bullion prices, although the rupee’s movement against the dollar can change the domestic impact.
2. Falling US Treasury Yields
Gold does not pay interest like government bonds or fixed deposits. Therefore, when Treasury yields decline, the opportunity cost of holding gold becomes lower.
This can make gold more attractive to investors.
Silver can also benefit from lower yields and a weaker dollar. However, its price depends on another important factor: industrial demand.
Silver is widely used in solar panels, electric vehicles, electronics and other industries. If industrial demand remains strong, it can provide additional support. On the other hand, concerns about slower economic growth can put pressure on silver.
Festive Shopping Gets Costlier Should Indians Buy Now or Wait for Better Loan Rates?
MCX Gold and Silver: Important Support and Resistance Levels
After the recent rally, traders will be watching whether gold and silver can maintain their gains. Technical levels can help identify possible buying and selling zones.
Based on the November 4 technical market report, the following MCX levels are worth watching:
MCX Gold (₹ per 10 grams) MCX Gold Support and Resistance
- Immediate Support: ₹1,38,072
- Second Support: ₹1,36,691
- Immediate Resistance: ₹1,40,624
- Second Resistance: ₹1,42,469
MCX Silver (₹ per kilogram) MCX Silver Support and Resistance
- Immediate Support: ₹1,75,670
- Second Support: ₹1,71,643
- Immediate Resistance: ₹1,83,306
- Second Resistance: ₹1,86,915
These are reference levels from a dated technical report, not guaranteed price targets. Different futures contracts and updated market prices may produce different levels.
A sustained move above resistance could indicate improving buying momentum. However, a break below immediate support could increase selling pressure.
What Should Investors Watch Next?
The election result has provided short-term support to precious metals, but the next direction will depend on economic data and central bank policy.
Investors should closely monitor the US Dollar Index, 10-year Treasury yields, Federal Reserve interest rate expectations and upcoming US employment and inflation data.
If the dollar and bond yields continue to weaken, gold and silver may receive further support. But if the dollar strengthens or interest rate expectations move higher, profit booking and price corrections cannot be ruled out.
For silver, industrial demand will remain equally important.
Fingossip Market Insight
The US Midterm Election result has created a positive short-term environment for gold and silver. Gold may benefit from safe-haven demand and lower yields, while silver could receive additional support from industrial demand.US Election Impact on Gold
However, investors should not make decisions based only on political developments. Dollar movement, bond yields, economic data and technical price levels will be important in understanding the next market trend.
Disclaimer: This article is for educational and informational purposes only. The technical levels are based on historical market data and are not investment recommendations. Always do your own research before making investment decisions.
