Gold prices extended overnight losses in North American trading on Tuesday, falling toward the lowest level in about two weeks as investor sentiment remained skewed toward riskier assets in the wake of Emmanuel Macron’s victory in the first round of Sunday’s presidential elections in France.
Comex gold futures slumped $7.90, or around 0.6%, to $1,269.60 a troy ounce by 8:30AM ET (12:30GMT). Meanwhile, spot gold was at $1,268.30, down 0.6%.
The yellow metal lost $11.60 on Monday after hitting its lowest since April 11 at $1,266.00, as investors dumped safe-haven assets after French election results eased fears over the future of the euro zone.
Also on the Comex, silver futures dipped 11.2 cents, or about 0.6% to $17.82 a troy ounce, after touching a one-month low of $17.55 in the prior session.
Global stocks and the euro remained in demand on Tuesday as markets embraced riskier assets in the wake of the French election results on Sunday.
The MSCI World Index, a gauge of global stocks, hit an all-time high for the second straight session.
The gains came as polls showed pro-Europe Macron easily defeating far-right nationalist Marine Le Pen in a runoff vote due to take place May 7, reducing the risk of an anti-establishment shock in the final round and easing fears over a possible French exit from the euro zone.
Geopolitical tensions remained in focus after North Korea conducted a massive live-fire drill on the 85th anniversary of the foundation of its army, media reports said on Tuesday, as a U.S. submarine docked in South Korea as planned.
U.S. President Donald Trump plans to hold a rare briefing at the White House for the entire U.S. Senate to discuss the situation in North Korea on Wednesday.
All 100 senators have been asked to the White House for the briefing by Secretary of State Rex Tillerson, Secretary of Defense Jim Mattis, Director of National Intelligence Dan Coats and General Joseph Dunford, chairman of the Joint Chiefs of Staff.
Trump called for new UN sanctions against North Korea on Monday and urged the organization to “solve the problem” of North Korea’s weapons program.
Regional tensions have risen over the past weeks as the Trump Administration has taken a tough rhetorical line with Pyongyang amid growing concern over its nuclear and missile programs.
Investors were also eyeing events in Washington ahead of a looming deadline to avoid a government shutdown and ongoing uncertainty over economic policy.
Elsewhere in metals trading, platinum inched down 0.3% to $957.65, while palladium slipped 0.4% to $792.22 an ounce.
May copper futures added 3.2 cents to $2.597 a pound.
