Gold and the demise of the Eurozone

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The gold price has now racked up 5 straight day of gains today, confirming its status as a  safe haven ,as some start to predict that the end is near for the European Union as we know it.

A poll released today showed French presidential candidate Marie Le Pen drawing closer to her nearest rival, which sent jitters through the market as she has promised to follow in the Uk’s footsteps and pull France out of the EU if she wins,

"The French presidential candidate, Le Pen, has managed to create a stir since putting herself forward and vocalising her desire for a Frexit” noted Fiona Cincotta, market analyst at CityINdex.

"The current thinking is that a first-round win for Le Pen is a very real possibility” she added.

She also noted that gold has benefited greatly, and further gains are expected from a potential Le Pen presidency as many had written her off just a few months ago and the situation is eerily similar to the shock of `Brexit,

"Gold has been quietly moving higher and is now sitting at two month highs, with more potential on the upside should Trump manage to push his travel ban through and Le Pen gather further support. The current thinking is that a first-round win for Le Pen is a very real possibility, however, political analysts believe a second-round win for her would be an enormous challenge” Cincotta said

"Yet this sounds very familiar and parallels can easily be drawn with Trump and even Brexit, which is why the markets are starting to look towards safe havens” she added.




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