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Gold and silver extended their rebounds on Monday after last week’s powerful rally, with prices building on momentum that followed the Democratic sweep of the midterm elections. Analysts at Heraeus said the move remains exposed to pressure from recovering oil prices and elevated expectations for another Fed rate increase.

Gold had dropped to a fresh 2026 low before reversing sharply, capping a decline of more than 15% from its late August high. The metal briefly fell below $3,900 per ounce, breaking the June low near $3,950 per ounce, according to the analysts.

The election sweep triggered gold’s largest daily gain since August and carried the price back above $4,000 per ounce. The recovery continued Monday morning, when spot gold traded near session highs.

Gold last changed hands at $4,124.86 per ounce, representing a daily gain of 1.30%. That left the metal firmly above the threshold it reclaimed during the election driven surge.

Oil prices provided an initial boost to the precious metals backdrop when Brent crude dropped nearly 9% in one session. The decline reflected expectations that the new Democrat controlled Congress would hasten the end of the Iran war.

Heraeus cautioned that the conflict remains underway and that the incoming Congress will not sit until January. Brent crude has already climbed back above $95 per barrel, restoring a potential source of pressure for gold and silver.

Fed policy presents another hurdle after Friday’s nonfarm payrolls report showed 165,000 jobs, far above expectations of 65,000. Heraeus said the stronger result reinforced the case for another rate increase in December, with markets pricing roughly a 79% probability of a hike.

Against those market pressures, official sector demand remains a substantial pillar for gold. Central banks and other official institutions added an estimated 321 tonnes during the third quarter, according to World Gold Council figures cited by Heraeus.

That buying was 42% higher than a year earlier and comfortably exceeded the five year quarterly average of 227 tonnes. Purchases during the first nine months of 2026 reached 675 tonnes, running 6% ahead of the corresponding period last year.

Only 120 tonnes of third quarter buying appeared in reported country level data. China and Poland led disclosed purchases with 63 tonnes and 40 tonnes, respectively, while Kazakhstan and Uzbekistan each added 14 tonnes.

Heraeus observed that stronger official buying during the second and third quarters coincided with some moderation in gold from its first quarter peak. The analysts said continued accumulation at historically high prices suggests strategic reserve diversification remains the principal force behind those purchases.

Silver also strengthened, even as production figures from Hecla showed output trailing last year’s pace. Hecla, identified as the largest primary silver producer in the United States and Canada, produced 4.17 million ounces during the third quarter of 2026.

That result was little changed from 4.21 million ounces in the second quarter, but it was 9% below the 4.58 million ounces produced one year earlier. Lower yield at Greens Creek and Lucky Friday was largely balanced by record production from Keno Hill.

Keno Hill output rose 54% from the previous quarter to 963,000 ounces as the milled grade improved significantly. Heraeus calculated that at 16.1 million ounces, Hecla would represent about 1.9% of forecast global silver mine supply of 844.1 million ounces in 2026.

Silver’s price rebound followed its own fresh 2026 low. The metal fell below $50 per ounce to a new year to date low just under $49, then recovered above $52, although it remained well below its June and July range.

The analysts said the bounce had recovered only a small part of the preceding decline. Silver traded close to $53 per ounce early in Monday’s equity session, with spot silver last at $52.682 per ounce for a daily gain of 1.48%.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.