US Election Impact: The results of the US midterm elections 2026 have dealt a major blow to President Donald Trump. The Democratic Party has captured both the Houses of the US Parliament i.e. the Senate and the House of Representatives. The threat of policy paralysis has arisen from this political earthquake in America. The question is whether Trump’s defeat will benefit or harm India? From gold and silver, crude oil to Indian stock market and how it will affect the rupee, understand the whole thing in 10 simple points.
- Money will come from dollar to India: Trump’s defeat will hamper American policies, which is having an adverse effect on the dollar and the bond market there. Due to this uncertainty, big investors around the world will shift their money (smart money) from dollar to gold, silver and Indian stock market which are considered safe investments.
- Latest gold and silver prices in India: In the international market, spot gold is trading at $3,903 to 3,913 per ounce and silver at $49.67 per ounce, amid election results. While in the Indian market, the price of 24 carat gold has reached Rs 1,42,263 per 10 grams and the price of silver has reached Rs 1,86,150 per kg.
- Gold may touch ₹1.50 lakh by Diwali: Market experts estimate that the current situation could take gold to $4,200 an ounce internationally, Mint reported. If this happens, the price of 10 grams of gold in India could touch the Rs 1,50,000 level by Diwali 2026, which would be a big shock to the common buyers.
- Older data is also bearing witness to the surge: Looking at historical data from the World Gold Council, apart from Brahmesh Tech Analysis, 11 of the last 14 US midterm elections have seen strong gains in the precious metal. In the six months after the election, gold has recorded a strong increase of 6.3 percent and silver 16.8 percent on average.
- Trump’s war powers will be curbed: Due to the ongoing US-Israeli-Iran war since February 28, the Strait of Hormuz was closed, cutting off oil supplies. A Reuters report said that with Democrats in the majority in Congress, Trump’s power to continue the war would be very limited.
- Pressure to reach agreement with Iran: After the defeat in Parliament, Trump will be under great pressure to reach an agreement with Iran and reopen the Strait of Hormuz. Trump himself has denied planning any immediate new attack on Iran, which is good news for a major oil importer like India.
- Crude oil will hit $100: At the time of the election results, Brent crude was running above $103 per barrel, while WTI crude was around $96 per barrel. This political shift is expected to end crude oil’s war premium, allowing Brent crude to slide to $100 per barrel.
- Sensex-Nifty and Rupee strong: Trump’s defeat of the Republican Party and the rise of the Democrats have had a very positive impact on the Indian stock market (Sensex and Nifty) along with the Indian Rupee at the start. A weak dollar has strengthened the rupee.
- Foreign investors return home: Signs of softening in crude oil prices and uncertainty in the US market have again brought foreign investors back to India. This return of foreign investors has given new strength to the local stock market.
- Market rally to continue: Indian stock market has seen some profit-booking after the initial surge, but market insiders say that the domestic stock market will see a good rally in the near future. Overall, a Trump defeat will make buying gold and silver expensive in India, but cheap crude oil and a rally in the stock market will benefit the Indian economy.
