Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.9% to close under $1,278 on rising risk appetite after euro-friendly Emmanuel Macron led all candidates in yesterday's French presidential election, greatly reducing the threat of Frexit, or a French exit from the euro.

Centrist Macron and far-right Marine Le Pen, finishing first and second, will compete in a runoff election in June. Markets were fearful that Le Pen and Jean-Luc Melenchon of the far-left, another euro-skeptic, would dominate voting and leave the nation no choice but to elect a president committed to leading France out of the EU. Few analysts give Le Pen a chance to win the next round.

Equities surged as relief over the election stoked a risk rally. The Dow gained more than 1.1%, and the Global Dow more than 2%, pulling investors away from safe-haven assets like gold and Treasurys.

The dollar ticked higher, adding 0.1% against a basket of rivals, despite the euro surging to a five-month high.

The other precious metals were mixed, with silver trading roughly flat while platinum fell 1.8% and palladium rose 0.6%.

At the Comex close: June gold fell $11.60 to $1,277.50; May silver was flat at $17.86; July platinum lost 17.40 to $960.20; June palladium added $4.70, to $795.45 an ounce.