Silver MCX settled down -0.39% at 41129 drifted lower with the contract’s fifth consecutive drop, as investors raised bets that Emmanuel Macron would emerge victorious in the second round of the French elections on May 7.
Bullion prices opened with gap down as Investors cut ties to risk-off assets after a snap poll suggested that independent centrist Emmanuel Macron would easily beat the National Front’s Marine Le Pen in the second round of France’s presidential election next month. Macron and Le Pen finished Nos. 1 and 2 respectively in the first round of voting on Sunday, setting the stage for a winner-take-all duel on May 7.
A victory for Le Pen could spell doom for the euro and broader financial markets, given the far-right leader’s stance on the EU and common currency. Macron, on the other hands, supports France’s continued membership of both.
Meanwhile, North Korea stoked geopolitical tensions, after the Kim Jong-un led nation said on Sunday that it was ready to sink a U.S. aircraft carrier, as two Japanese navy ships joined a U.S. carrier group in the western Pacific.
Elsewhere, investors look ahead to details on President Donald Trump’s tax reform plan. President Donald Trump said Friday, he will unveil a tax plan on “Wednesday or shortly thereafter” that includes a “massive tax cut” for individuals and businesses. In the week ahead, political developments in France are likely to set the tone ahead of Thursday’s ECB meeting and Friday’s euro zone inflation data. Investors will also be focusing on preliminary estimates of first quarter growth from the UK and the U.S. on Friday. — Neal Bhai Reports