• Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday as the U.S. dollar and U.S. equities weakened.
• Gold has rallied to the highest level in nearly three weeks after a strong debate performance from French centrist presidential candidate Emmanuel Macron and as fading expectations for near-term US interest rate rise pushs the US dollar lower.
• The US dollar index fell to a six-week low while 10-year Treasury yields and US and European shares also dropped, helping to bolster gold.
• Spot gold was up 0.9 per cent at $US1,244.48 an ounce by 2:50 pm Tuesday EDT (0750 Wednesday AEDT), just off the session high of $US1,247.60, its highest level since March 2. The most active gold contract for April delivery rose 12.5 U.S. dollars, or 1.01 percent, to settle at 1,246.50 dollars per ounce.
• The U.S. dollar fell sharply on Tuesday as the euro rebounded in the wake of the French presidential debate.
• Analysts believe that centrist candidate Emmanuel Macron performed well in the debate and this increased the value of the euro relative to the U.S. dollar as investors believe far-rightist Marine Le Pen is less likely to win.
• Investors have been cautiously weighing the potential for the election of French presidential candidate Marine Le Pen.
She is generally seen by the markets as a potentially destabilizing factor as she has pledged to hold a referendum on France's future in the European Union, which has led to some investors' fear of a repeat of Brexit.
• "The previous two hikes marked cycle lows for gold, and European election uncertainty, US President Trump's foreign policies, as well as seasonal demand in India materializing in April are likely to make Q2 the strongest quarter for gold prices this year," Standard Chartered said in a note.
• Meanwhile, data from the Swiss customs bureau showed Hong Kong's net gold exports to Switzerland hit their highest level in February since records began five years ago.
• Silver for May delivery rose 14.5 cents, or 1.01 percent, to close at 17.583 dollars per ounce.
Reference: Xinhua, Business News
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