Gold is getting crushed after the French election

LONDON — The price of gold is diving on Monday after centre-left candidate Emmanuel Macron won the biggest share of the vote in the first round of France's presidential election on Sunday.

Macron taking the lead is generally seen as a big bonus in the markets, largely because his strongly pro-EU stance lowers the probability of France leaving the euro or the wider European Union. 

As a result, gold — regarded as a safe haven in times of financial or political turmoil, but vulnerable to big losses when times are good — has lost close to 1.5% since the beginning of trading, reflecting an increased appetite for risk assets after the vote.

Gold fell off a cliff after projections showed Macron reaching the second round run-off with far-right candidate Marine Le Pen, and after a brief recovery in overnight trading, has remained subdued.

The precious metal is trading at around $1,270 per ounce as of 1.30 p.m. BST (8.30 a.m. ET). Here is the chart:

Investing.com

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See Also:

• The euro surged on Monday after Emmanuel Macron won the first round of the French election

• DEUTSCHE BANK: Stop looking at France and concentrate on another huge risk to the EU — Italy

• NOMURA: Macron could send the euro to $1.15

SEE ALSO: The euro is holding onto big gains after Emmanuel Macron won the first round of the French election