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PRECIOUS-Gold falls after French election result revives risk-on sentiment
April 24, 2017 / 4:14 AM / 5 months ago

PRECIOUS-Gold falls after French election result revives risk-on sentiment

    * Centrist Emmanuel Macron wins first round in French
election
    * Speculators raise bullish COMEX gold stance for fifth week
    * SPDR Gold holdings up 0.52 pct Friday
    * Spot silver slides to one-month low

 (Updates prices)
    By Swati Verma
    BENGALURU, April 24 (Reuters) - Gold fell more than 1
percent on Monday to its lowest in nearly two weeks after
centrist candidate Emmanuel Macron won the first round of French
presidential election, boosting stocks and sparking a sell-off
in the safe-haven bullion.
    Spot gold        was down over 1 percent at $1,270.80 per
ounce by 0618 GMT, after falling to a near two-week low of
$1,265.90 earlier in the session. 
    U.S. gold futures         were down 1.3 percent at $1,272.80
an ounce. 
    "Gold prices have fallen sharply this morning due to the
improvement in risk sentiment," said OCBC analyst Barnabas Gan.
    "Macron and Marine Le Pen have emerged as the two key
winners of the French elections. It does remove some of the
suspense and risk-off sentiment we saw late last week."
    In France, Macron took a big step towards the presidency on
Sunday by winning the first round of voting and qualifying for a
May 7 runoff alongside far-right leader Marine Le Pen.
            
    "With Macron showing good results, the safe-haven buying
dried up pretty quickly and I think this is the reason behind
gold selling off this morning," said ANZ analyst Daniel Hynes.
    The outcome lessens the risk of an anti-establishment shock
on the scale of Britain's vote to quit the European Union, with
Macron widely tipped to win the final vote and keep France in
the union.
    The euro on Monday briefly vaulted to five-month peaks on
relief at the result, while U.S. stock index futures rose
sharply on Sunday.                    
    Holdings of SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, rose 0.52 percent to 858.69
tonnes on Friday.          
    Speculators increased their net long positions in COMEX gold
for the fifth straight week to April 18, lifting it to a
five-month high, U.S. Commodity Futures Trading Commission
(CFTC) data showed on Friday.             
    Spot silver        was down 0.6 percent at $17.77 an ounce,
after earlier touching a one-month low of $17.65.
    Platinum        fell 0.4 percent to $966.40, while palladium
       was up 1 percent at $799.30. 

 (Reporting by Swati Verma in Bengaluru; Editing by Richard
Pullin and Subhranshu Sahu)
  

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