The price of gold is diving on Monday morning after centrist candidate Emmanuel Macron won the biggest share of the vote in the first round of France’s presidential election on Sunday.
Macron taking the lead is generally seen as a big bonus in the markets, largely because his strongly pro-EU stance lowers the probability of France leaving the euro or the wider European Union.
As a result, gold – regarded as a safe haven in times of financial or political turmoil, but vulnerable to big losses when times are good — has lost close to 1.3% since the beginning of Asian trading, reflecting an increased appetite for risk assets after the vote.
Gold fell off a cliff after projections showed Macron reaching the second round run-off with far-right candidate Marine Le Pen, and after a brief recovery in overnight trading, has remained subdued.
The precious metal is trading at around $1,271 per ounce as of 7.00 a.m. BST (2.00 a.m. ET). Here is the chart:
Source: Business Insider UK