Republican Wins Help Push Gold Down to $1,140.40 an Ounce

Gold has fallen to a four-year low, with the spot gold price reaching $1,140.40 an ounce, according to Reuters. This marked a decrease of more than 2 percent for the yellow metal.

iNVEZZ.com attributed the decline to a boost in strength to the U.S. dollar following the victories of various Republican Senate candidates in the midterm elections.

“Republicans might be harder on the Fed and loose policy,” IG Market Analyst Chris Beauchamp was quoted as saying by MarketWatch. “There’s little reason to hold gold when forward interest rates are going in one direction. Why hold gold when it pays you nothing. Plus deflation fears are never good for gold.”

Meanwhile, U.S. gold futures fell by $27.40 to $1,140.50 an ounce.