Gold up on political uncertainty in Europe

April 19, 2017 1:00 PM

goldCHICAGO, April 18 (Xinhua) — Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday amid worries over the political uncertainty in Europe.
The most active gold contract for June delivery rose 2.2 U.S. dollars, or 0.17 percent, to settle at 1,294.10 dollars per ounce.

The precious metal rose as geopolitical worries increased over the possible election of French presidential candidate Marine LePen who on Monday held a campaign rally that led to clashes and police firing tear gas into the crowd.

LePen is generally seen by the markets as a potentially destabilizing factor as she has promised to hold a referendum on French participation in the European Union, which has led some investors to fear a repeat of Brexit. She has performed well in the polls recently.
In another move which sent shock waves, British Prime Minister Theresa May announced on Tuesday that her Conservative government would seek early election in June.
Some Analysts say through the snap election, May probably wants a stronger mandate for her and her government in Brexit negotiations with the EU.

Gold was given further support as the U.S. Dollar Index fell by 0.71 percent as of 1800 GMT. The index is a measure of the dollar against a basket of major currencies.
The U.S. Dow Jones Industrial Average fell by 120 points, or 0.58 percent as of 1800 GMT Analysts note that when equities post losses, the precious metal usually goes up.

Silver for May delivery lost 24.2 cents, or 1.31 percent, to close at 18.272 dollars per ounce. Platinum for July delivery fell 12.5 dollars, or 1.26 percent, to close at 978.60 dollars per ounce.

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