Silver Prices Gain Traction After French Election

New York (May 8)  Silver prices advanced Monday, as markets reacted to Emmanuel Macron’s swift victory in the second round of France’s presidential election.

July silver futures rose 11 cents, or 0.7%, to $16.38 a troy ounce at 7:21 a.m. ET. The futures price fluctuated within a daily range of $16.26 and $16.46.

 The grey metal has declined more than 11% over the past three weeks.

Gold prices also rose Monday, with the June contract climbing $6.60, or 0.6%, to $1,233.50 a troy ounce. Bullion fell to seven-week lows on Friday.

Precious metals have faced strong downward pressure as of late, as risk aversion evaporated from the financial markets in favor of equities. Stocks have been in a general uptrend since the first round of France’s presidential election April 23, as the outcome guaranteed that the final round of voting will not be dominated by two Euroskeptic candidates.

Macron emerged victorious in the Sunday runoff election, beating nationalist Marine Le Pen by 66% to 34%. With Le Pen’s defeat, Frexit risks have all but diminished – at least, for the time being.

The U.S. dollar rebounded at the start of the week after struggling near six-month lows against a basket of major rivals. The dollar index added 0.3% to 98.90 through the morning session.

The euro made a first high above 1.10 U.S. at the start of Monday trading. The currency was last down 0.5% at 1.0954 U.S.

In economic data, China’s dollar-denominated trade surplus expanded more than expected in April, as exports and imports both rose. Beijing reported a trade balance of $38.05 billion, up from $23.93 billion the month before.

Exports rose at an annualized 8% pace, while imports advanced 11.9% year-over-year.

Source: EconomicCalendar