US election: Dollar falls, gold surges as Democrats defeat Trump’s Republicans

Financial markets have reacted negatively to the outcome of the United States midterm elections, in which the Democratic Party made significant gains in Congress at the expense of President Donald Trump’s Republican Party.

The election results saw several traditionally Republican-leaning states turn towards the Democrats, presenting a political setback for Trump as he approaches the final years of his presidency.

DAILY POST’s market survey showed that the US dollar dropped by 0.6 per cent against a basket of major international currencies at one point before trimming its losses to 0.35 per cent.

The decline was particularly noticeable against the Japanese yen and the Swiss franc.

Meanwhile, gold prices advanced by 2.4 per cent, benefiting from the weakness of the US dollar. Spot gold rose to $4,022 per ounce.

Similarly, US stock futures recorded significant declines, with futures tracking the technology-heavy Nasdaq Composite falling by more than 2 per cent before recovering to a loss of 0.25 per cent. S&P 500 futures also traded 0.2 per cent lower.

Following Tuesday’s trading session, artificial intelligence-related stocks experienced widespread losses across regional markets, while US Treasury bonds rallied in reaction to the election outcome.

Reacting to the results, Trump congratulated the Democrats on their electoral victory but maintained that the Republican Party’s losses did not indicate that Americans had withdrawn their support for his leadership.

He blamed the electoral setback partly on rising gasoline prices, which he linked to the war in Iran that escalated in February 2026.