Gold dumped as Macron & Le Pen head to runoffs

Gold gapped lower and extended losses to $1266; the lowest level since Apr 11 after Le Pen finished behind Macron in the first round of the French elections.

Relief for markets & for polls

The risk-on action could be attributed to the fact that the worst case scenario of Le Pen-Melenchon for the runoff has been avoided. Moreover, polls got it right this time and thus the results are not only a relief for the markets, but also for the polls, who had lost credibility following the Brexit and US election disaster.

The offered tone around the safe haven metal remains intact, despite the mild recovery to $1272/Oz. Another round of selling could be seen in early Europe and North American session.

The decline in gold goes well with the fact that US 10-year treasury yield is up close to 8 basis points.

Gold Technical Levels

Friday’s close was $1289. The bulls are down, but definitely not out… despite the drop to $1266 levels. This is because the metal still trades well above the 50-DMA, 100-DMA and 200-DMA levels. AT the time of writing, prices were hovering around $1273.

A break below 4-hr 100-MA line of $1268 could yield $1261 (support on 4-hr chart) and $1248 (4-hr 200-MA). On the higher side, breach of resistance at $1275 (session high) could see the metal fill the gap by moving higher to $1283 (4-hr 50-MA) and $1295 levels (recent high).

15M Strongly Bearish Oversold High
1H Bullish Overbought High
4H Bearish Neutral Shrinking
1D Bullish Overbought Shrinking
1W Bullish Neutral Low


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD battles with 1.1700 as the market mood turns sour

Poor German data and renewed concerns about a default of the Chinese Evergrande property giant undermined investors’ sentiment, pushing them into the dollar’s safety.


GBP/USD accelerates its slump, trades around 1.3650

GBP/USD is under strong selling pressure, trimming most of its post-BOE gains. Concerns about the global financial health and slow moves towards tapering weigh on markets.


XAU/USD hangs near multi-week lows, around $1,745 ahead of Powell

Gold struggled to capitalize on its attempted intraday recovery move. Hawkish Fed/BoE, rising bond yields acted as a headwind for the metal. Resurgent USD demand exerted additional pressure on the commodity.

Gold News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

PBoC bans crypto trading activities and a plethora of associated services, labeling it “illegal.” Overseas cryptocurrency exchanges providing services to Chinese residents will be investigated in accordance with the law. 

Read more

Evergrande, VIX and yields make for choppy day ahead

Equity markets remain focused on Evergrande as rumours of a possible default on overseas debt swirl. The market appears to be on the hunt for negative news, which leads us to conclude that stocks are going lower in the short term.

Read more