European indices continue to feel the impact of last weekend's European Elections, where right-wing parties outperformed expectations. Following a significant defeat, French President Emmanuel Macron has called for a parliamentary election at the end of the month. Meanwhile, the Belgian Prime Minister has resigned, and German Chancellor Olaf Scholz’s center-left Social Democrats polled just 14%, marking their worst-ever result in a nationwide vote. European indices dropped on Monday, eventually recovering towards the session's end, but renewed selling pressure today has driven some indices to multi-week lows.

Gold is recovering some of its losses from Friday's post-NFP decline, nearing a significant support level around $2,280/oz. The precious metal remains below the 20-day and 50-day simple moving averages, at $2,355/oz. and $2,343/oz., respectively. To initiate a higher move, gold will need to break and open above these indicators.

Market Update – Risk Sentiment Slips, Gold Better Bid as US CPI and FOMC Near

Jun 12 2024

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