Gold & Silver Decline as the Euro Dips Below $1.30

On Monday, gold (NYSEARCA:GLD) futures for June delivery declined $6.10 to settle at $1,639.10 per ounce, while silver (NYSEARCA:SLV) futures fell 31 cents to close at $30.12.

Both precious metals turned lower as the U.S. dollar climbed higher on the back of a weaker euro, which fell below $1.30 for the first time since January. Over the weekend, voters in France elected Francois Hollande from the Socialist party, placing austerity plans in jeopardy. Since the start of his campaign for president, Hollande said he would aim to renegotiate the European fiscal treaty that leaders agreed upon last year.

Don’t Miss: What Do Americans Think About Gold?

“The euro will likely continue to tread on a weaker footing, pulled down by an unclear outlook for the future,” said Sumino Kamei, senior analyst at the Bank of Tokyo-Mitsubishi UFJ, according to WSJ. “This will be a week of risk-aversion.”

Follow us   Follow @IBTimesUK

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) edged .32 percent lower, while the iShares Silver Trust (NYSEARCA:SLV) declined .89 percent. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) fell .05 percent and 2.20 percent, respectively. Meanwhile, silver investments such as Silver Wheaton (NYSE:SLW) and First Majestic (NYSE:AG) dropped more than 3 percent.

Investor Insight: Warren Buffett and Charlie Munger Tag Team Gold

If you would like to receive professional analysis on equity miners and other precious metal investments, we invite you to try our premium service free for 14 days.

Disclosure: Long EXK, AG, HL, PHYS