The price of gold was slightly higher ahead of the plunge of bargain-hunting for seven weeks straight. After the victory of Emmanuel Macron on Sunday’s French presidential election, the safe-haven demand subsided.
Tom Kendall, bank analysts at ICBC Standard Bank, says the outcome of the French polls was well forecasted considering that on the previous week, they had some long withdrawal in the yellow metal, but still the demand is in good shape. He added that the gold being on the supported level is already expected.
Spot gold edged down by 0.07 percent and trades at $1,226.68 an ounce; it reached its lowest level since March 17 by touching 1,224.86 on the previous session. Last week, the bullion fell more than 3.2 percent, its most depressing decline in a span of 25 weeks. Meanwhile U.S. gold futures advances 20 cents, and trades at $1,227.10 per ounce.
Now that Macron surpassed his rival Marine Le Pen, whom pledges to divorce France from the euro, political risks are now omitted out of the country. This drives the investors to keep an eye on the normalization of monetary policy in United States and Europe.
Last Friday, figures from the employment growth of United States rebounded and the jobless claims were 4.4 percent lower. This is perceived as strengthening the case for the country to lift its interest rates on June, however higher rates depress the dollar-priced gold.
In other precious metals, Platinum rose 0.77 percent at $918.50, Palladium however fell 0.08 percent at $810, and Spot silver was 0.43 percent at $16.23.