Spot gold was down 0.7 percent at $1,275 an ounce by 3:19 p.m. EDT (1919 GMT), having touched its lowest in nearly two weeks at $1,265.90.
In the wider markets, global equity markets rallied to send a gauge of world stock indexes to a record high.
We see more downside in the very short term, leading up to the (French election) run-off in two weeks,” said Societe Generale analyst Robin Bhar.
“The predominant factor (for gold) will be the retreat of risk aversion,” Simona Gambarini, analyst at Capital Economics, told the Reuters Global Gold Forum.
“For the moment some of the tail risk in the form of a shock win by any of the other candidates has been averted.
PRECIOUS-Gold eases in French election afterglow; safe-haven demand supports
as informed in [nFWN1HW0SP] Silver <XAG=> was up 0.1 percent at $17.92 an ounce, after touching a one-month low of $17.65 on Monday.
Holdings have risen 6 tonnes in the past two sessions, indicating investor’s interest in the safe-haven asset.
Holdings of SPDR Gold, the world’s largest gold-backed exchange-traded fund, rose 0.17 percent to 860.17 tonnes on Monday.
Still, analysts said safe-haven demand for gold remained strong amid the tensions over North Korea’s nuclear and missile programme as well as a potential government shutdown in the United States this week.
Platinum <XPT=> was steady at $959.30 an ounce, after falling over 1 percent in the prior session.
as informed in Centrist candidate Emmanuel Macron of the vote while far-right candidate Marine Le Pen garnered 21.7%.
The Nasdaq hit an all-time high on MondayInvesting.com – U.S. stocks closed higher on Monday, as investors piled into risk assets after pro-European candidate Emmanuel Macron won the first round of the French presidential election on Sunday.
Meanwhile, fears eased that anti-EU candidate Marine Le Pen would pip Emmanuel Macron to the French presidency, after polls indicated a victory for Mr Macron in the runoff vote scheduled for May 7.
Financials, mostly banks, led the rally on Wall Street, as JPMorgan and Goldman Sachs were among the strongest performers of the session.
Nike Inc (NYSE: ) down 0.7%, Walt Disney Company (NYSE: ) down 0.6% and Verizon Communications Inc (NYSE: ) down 0.4%, were among the worst Dow performers of the session.