Dollar falls while gold and US Treasury bonds rally as markets react to Democrats’ midterm election victory – business live

Democrats’ capture of Congress raise expectations of tougher regulation of AI sector; US stock futures fall but later pare losses

Chris Beauchamp, chief market analyst at the investing and trading platform IG, says:

Overnight markets had pointed towards steep losses for futures, but the picture is looking rosier as markets seem to look towards the future with relish.

A divided US government has often been the best outcome for markets, and we are staring that squarely in the face today. Gold and silver are up, while volatility has reversed course too. All eyes are on the White House now, but Trump’s apparent acceptance of the results at least suggests a nasty litigation battle (or worse) is off the cards.

Midterms rattle Trump, send dollar lower and bullion higher: The heavy Republican defeat is a stark reminder that even a president who dominates the political conversation is not immune to voter discontent.

The scale of the losses will inevitably raise questions about Trump’s ability to push through his agenda over the next two years, and markets are already reacting. The dollar is under pressure as investors reassess the political outlook, while gold and silver are benefiting as safe haven plays.

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