Gold prices in US Dollar terms rallied Monday after making the biggest 1-day drop in a year, with market experts describing that 2% plunge as ‘overdone’ and ‘technical selling overkill’ on news that China’s central bank didn’t buy any gold in May, writes Atsuko Whitehouse at BullionVault.
Euro gold prices meanwhile moved higher, rising back to start-June levels, as the weekend’s big gains for ‘far right’ parties in the 2024 European Parliament election – most calling for lower immigration and the roll-back of green energy rules – hit the union’s currency, equities and bond prices.
Gold priced in Euros rose 1.0% on Monday to €2143 per Troy ounce as the official currency of 20 out of 27 European Union member countries lost 0.6% against the Dollar to its weakest level in more than a month.
While ‘centrist’ parties retain overall control in Brussels and Strasbourg, the AfD took 2nd place in Germany, the Brothers of Italy cemented their dominance under Prime Minister Giorgia Meloni, and Marine Le Pen’s National Rally took 1/3rd of the votes in France, followed by centrist President Emmanuel Macron calling a snap election at home.
European equities fell hard on the result, led by banks BNP Paribas and Société Generale tumbling more than 8%, while yields on France’s 10-year government bonds hit the highest level this year at 3.2% per annum as the debt – already downgraded at the start of June by ratings agency Standard & Poor’s – fell in price.
Full article: Bullion Vault
