Geopolitical uncertainty often stokes interest in gold and the related ETFs. However, a Le Pen loss in the French election next month could boost the euro against the dollar. That could be of some assistance to gold, which is denominated in dollars.
“Bob Haberkorn, senior market strategist at RJO Futures, recommends buying the metal on dips heading into the French vote. Prices will probably fall if Le Pen loses, but expected wrangling over the U.S. debt ceiling by lawmakers in coming months could quickly reignite buying. Gold prices also have responded to U.S. airstrikes in Syria and the spike in tension between the U.S. and North Korea,” according to Barron’s.
For more information on the gold market, visit our gold category.
Tom Lydon’s clients own shares of GLD.