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

Democrats’ victory in the US midterm elections sent the dollar lower while gold and US Treasury bonds rallied, as investors responded to the prospect of a divided government. The result could constrain the White House and increase congressional scrutiny, with consequences for US trade and technology policy.

Analyst Arun Pillai-Essex expects affordability concerns to drive bipartisan pressure for selective tariff relief, but says the wider tariff framework is likely to remain in place, including proposed duties on manufacturing overcapacity across 16 economies. Opposition to datacentres is also gaining ground over their electricity and water demands, potentially bringing tighter project conditions and pressure on developers to cover infrastructure costs. Disagreements over semiconductor export controls and investment restrictions are likely to sharpen.