Gold jumped about 3% to around $4,053 on Wednesday morning, back above $4,000, while Bitcoin dropped just below $76,000 overnight as midterm results came in, then ripped back above $80,000, a gain of over 4% on the day.
Gold, silver and Bitcoin all rose after the election, in what Kitco News described as the post-midterm pump showing up right on schedule. Silver popped about 4.6%, while gold closed at $4,076.2 on November 4, up 3.45% on the day, according to market data. Bitcoin closed at $80,443.52, up 3.86%, after touching $75,736.38, its 20-day low.
Two days earlier, gold was back near $3,968 after dropping to $3,870 on Friday, its lowest level in over a year. Gold hit an all-time high above $5,600 in January, and at Friday's low it was down about 30% from that peak. Getting back above $4,000 this fast suggested Friday's low near $3,870 could be the bottom, according to Kitco.
Bitcoin's bounce looked more fragile. Bitcoin still had not broken above the major support and resistance line in the $80,000 to $82,000 zone, and until it reclaims that level and closes a daily candle above it, the move was being treated as a relief rally rather than a new uptrend. Bitcoin ended October near $77,558, down about 7.3% from its $83,554 open, its weakest October since 2014.
The market is still pricing a likely Federal Reserve rate hike in December, and the October jobs report due Friday is the next major test. The S&P 500 has been higher 12 months after every midterm election since 1954, according to Kitco, though a one-day pump is not confirmation of a new bull market.
