Macrons Win Drives Yields High Affecting Gold Price
By Daisy Joseph
When the major global economies strengthen, investors lose their interest in investing in gold.
The rising of global economies is thus a threat to the gold prices. The French Presidential election is now over. The crowd favorite Emmanuel Macron dominated Marine Le Pen by securing 65% of the votes against 35%. This has pushed the bond yields higher, favoring the investors.
Macron’s win is a good news for the EU but the results are expected. The investors were hoping for Macron’s win as he dominated in the first round of the election. So, the actual result of the French presidential election did not have a major influence in the economic market conditions.
After the result of the French election, major currencies strengthened. As a result, the gold price dipped to a six-week low. The gold prices may move towards the digestion mode and this may change when something unscheduled happens in the market.
Crude oil prices faced a downward trend, reaching its lowest value for this year. The increasing market liquidation is one of the major reasons for the fall in crude oil prices. However, the trend didn’t continue for the whole day. The intraday trading supported crude oil as the WTI futures faced an upward movement. This helped the WTI futures to recover from the losses in the past 5 sessions.
The rig count data from Baker Hughes reported the increase in extraction sites as the count is at a two-year high. The WTI futures have also lost their importance. The OPEC deal was made incompetent by the market conditions.
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