Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.8% to close just above $1,267 as equities extended their rally on relief over the French presidential election, upbeat housing data, and hopes for U.S. tax reform.

The Dow rallied 1.2% and the Global Dow added 0.9% as risk appetite rose for a second session in the wake of election results in France. Centrist Emmanaul Macron and euro-skeptic Marine Le Pen will face each other in a runoff election May 7, with Macron heavily favored to win. Investors had been fearful that a runoff between Le Pen and Jean-Luc Melenchon, another euro-skeptic, would have put the European Union itself in jeopardy.

New home sales jumped nearly 6% to an eight-month high in March while home prices rose at fastest rate in nearly three years. The strong data lent hope that the crucial housing market could help to spur real GDP growth in Q2 after Q1's meager rise of 0.5%.

Equities received additional support from reports that President Donald Trump wants to slash corporate tax rates from 35% to just 15%, prioritizing growth over deficits.

The other precious metals were mostly lower, with silver and platinum dropping 1.5% and 0.3%, respectively, while outlier palladium added 0.25.

At the Comex close: June gold lost $10.30 to $1,267.20; May silver dropped 27 cents to $17.59; July platinum slid $2.60 to $956.10; and June palladium added $1.20, to $796.65 an ounce.