Gold Down Amid Big Risk-On Trade After French Election

(Kitco News) -Gold prices were ending the U.S. day session lower but up from the daily low Monday, as safe-haven assets were hit hard by rallying risk assets that include world stock markets and the Euro currency. June Comex gold was last down $12.90 an ounce at $1,276.20. May Comex silver was last down $0.009 at $17.865 an ounce.

The first round of the French presidential elections held Sunday showed the nationalist candidate Marine LePen garner less support than expected and dealing the so-called Euroskeptics another blow. LePen will be in a run-off election May 7 against centrist candidate, Emmanuel Macron. Macron is projected by early polls to be the soild winner of the May 7 vote. European market watchers had been very nervous as the French elections approached and polls showed tight races. A few weeks ago the Dutch elections showed the nationalist candidate go down in defeat. 

Other Safe-haven assets, U.S. Treasuries and U.S. dollar index prices, also saw price declines Monday as the world stock markets were in rally mode. The Euro currency pushed to a five-month high on the French election results.

If world stock markets continue their rallies this week, look for the gold market to continue to suffer losses. However, there are still geopolitical tensions that could quickly halt the selling interest in gold and push the yellow metal’s price north. The U.S.-North Korea stare-down and U.S.-Russia relations are still very much pressure points in the world marketplace.

Technically, June gold futures prices closed nearer the session high today. Prices are still in a five-week-old uptrend on the daily bar chart, but now just barely. The gold bulls still have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,250.00. First resistance is seen at today’s high of $1,280.00 and then at $1,290.00. First support is seen at $1,275.00 and then at today’s low of 1,266.00. Wyckoff's Market Rating: 6.0

May silver futures prices closed nearer the session high after hitting a five-week low early on today. The silver market bulls still have the slight overall near-term technical advantage but need to show fresh power soon to keep it. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the April high of $18.655 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $17.00. First resistance is seen at $18.00 and then at $18.22. Next support is seen at $17.735 and then at today’s low of $17.55. Wyckoff's Market Rating: 5.5.

May N.Y. copper closed up 145 points at 255.20 cents today. Prices closed near mid-range on short covering after hitting a 3.5-month low last week. The copper bears still have the overall near-term technical advantage. Prices are in a nine-week-old downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 270.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the December low of 245.60 cents. First resistance is seen at today’s high of 257.20 cents and then at 260.00 cents. First support is seen at the April low of 249.40 cents and then at 245.60 cents. Wyckoff's Market Rating: 4.0.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)