Gold ends lower after vote soothes French euro exit fears

Commentary, Gold, News

Analyst: Worries that Le Pen could win presidency have been allayed

Gold futures ended lower Monday after the outcome of the first round of France’s presidential election eased fears of an outcome that could threaten the country’s membership in the euro and the European Union.

Gold for June delivery GCM7, -0.94%  dropped $11.60, or 0.9%, to close at $1,277.50 an ounce, but off a session low of $1,266. May silver SIK7, +0.02%  ended little changed at $17.86 an ounce.

Centrist candidate Emmanuel Macron topped the field in Sunday’s first-round election. He’ll face off with euroskeptic, right-wing candidate Marine Le Pen in a May 7 runoff. Early polls give Macron a substantial lead.

“The result of the first round of voting in France has clearly gone some way to dispelling the fears associated with the presidential elections…Those speculative financial investors who had previously still been betting heavily on rising gold prices are likely to have covered many of their positions in response to the election result,” said Carsten Fritsch, commodities analyst at Commerzbank.

Safety plays such as gold gained Friday. Gold settled 0.4% higher on Friday, giving the metal a gain of less than 0.1% for last week.

In other metals trade, July platinum PLN7, -1.69%  fell $17.40, or 1.8%, to close at $960.20 an ounce, while June palladium PAM7, +0.50%  rose $4.70, or 0.6%, to settle at $795.45 an ounce.

May copper HGK7, +0.67%  rose around a penny to finish at $2.55 a pound, according to FactSet.

Read this article in its original format at MarketWatch.com


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