Gold mining stocks climb as Democrats win midterm elections

US-listed shares of gold mining companies rose in premarket trading on Wednesday as spot gold prices increased 3.02% to $4,446.90 per ounce.

The gains in gold came as the US dollar fell to a one-month low following the Democratic Party’s win of both the Senate and House in US midterm elections.

Major mining companies posted strong gains in early trading. Barrick Gold and Newmont each climbed more than 5%. Agnico Eagle Mines rose 5%, while Kinross Gold advanced 6.8%.

The weaker dollar supported gold prices, as the metal typically moves inversely to the US currency.