French Elections, Brexit And Gold

The first round of the French presidential elections is behind us. Now, the main developments in Europe which may affect the gold market – except the turmoil in the still fragile banking sector – are a run-off in France and Brexit. Let’s analyze them and their potential impact on the gold prices.

As everyone already knows, centrist Macron and nationalistic Le Pen are set to face off on May 7. That pair is the best possible outcome for the markets, as Macron is believed to easily beat Le Pen (although the race is open, especially if Jean-Luc Melenchon backs Le Pen). This is why the price of gold dropped on Monday after the first round of the election, as one...