US Midterms Lower Spending Expectations: Why Policy Risk Supports Gold - Crux Investor

AI desk brief

Gold ETFs attracted 211 tonnes in the third quarter and $2.7 billion in October 2026, while estimated central-bank purchases reached 321 tonnes in the quarter, up 42% year over year. Citing WGC, the source says US midterm results reduced fiscal-expansion expectations, but executive, regulatory and war-funding uncertainty could sustain gold’s hedging appeal. Third-quarter supply fell 1% to approximately 1,369 tonnes as weaker recycling and producer de-hedging offset record mine output. Industry second-quarter AISC rose 22% to $1,930/oz; producers’ ability to convert gold strength into cash flow would depend on costs, reliable output and financed expansion.