Gold Price Jumps on Soft Dollar, Holds Above $4,020 Monday
Gold recovered above $4,020 an ounce in Asian trading on Monday, November 9, 2026, as a softer US dollar and Washington politics offset a strong jobs report that raised bets on a Federal Reserve rate hike in December.
Gold jumps on a soft dollar, recovering above $4,020 an ounce in Asian trading on Monday, November 9, 2026, after a sharp drop on Friday. The gain came even though a strong US jobs report has raised expectations of higher interest rates.
The US dollar weakened on Monday, which makes gold cheaper for buyers using other currencies. Traders also pointed to Washington politics for support.
Democrats and the defense budget
Democrats, who secured majorities in both the House and Senate, are strongly opposing President Donald Trump's proposed $1.5 trillion defense budget, according to a report. They appear determined to block it.
A person familiar with the discussions said Democrats are likely to approve only about $1 trillion. They do not want to be seen funding the war against Iran, the person said. Markets read that as a sign the conflict could end sooner.
Why the rebound may be capped
Friday's data pulled the other way. The US economy added 165,000 jobs in October, up from 60,000 in September, the Bureau of Labor Statistics said. The unemployment rate fell to 4.1% from 4.2%.
The dollar index rose 0.71% on Friday to a one-week high. December COMEX gold futures closed down $38.60, or 0.94%.
Higher interest rates make gold less attractive because it pays no interest. Traders now see about 79.6% odds of a Fed rate hike in December, up from 72.8% before the jobs report, according to the CME FedWatch tool.
Two Fed officials added to that view on Friday. New York Fed President John Williams said inflation is "absolutely too high." San Francisco Fed President May Daly said, "My expectation is we're going to have to tighten monetary policy further."
Analysts watch equities and inflation
Independent metals trader Tai Wong said gold "gapped lower on a stellar employment report" but was trying to claw back higher. He called it "a litmus test for this week's rally."
Analysts at OCBC said gold pared earlier gains after touching a two-week high above $4,140. They warned that a deepening selloff in AI and semiconductor stocks could force investors to raise cash, and gold might not be spared.
They also called gold's resilience during the equity selloff "encouraging." US inflation data is another key test, they said, with oil prices a major driver of rate expectations.
On the daily chart, gold still sits below its 100-day simple moving average, a common trend gauge. The Relative Strength Index, which measures momentum, stood at 50.30, close to neutral. FXStreet's technical read is that the bounce lacks decisive momentum.
