Video: What Le Pen's Temporary Step Down Means For Gold - Peter Hug

The French drama continues Monday as right-wing candidate, and runner up in Sunday's election Marine Le Pen says she is 'temporarily' stepping down as National Front party leader to focus on the presidential race. This comes just after her loss against centrist candidate Emmanuel Macron. All eyes are now on the second round of French elections scheduled for May 7. So far, there has been little market reaction to the Le Pen news and according to Kitco's global trading director Peter Hug, there hasn't been much movement in safe haven gold either.

'I think the most sensitive barometer to market reaction is usually the foreign exchange market and I've been watching the euro-dollar since news broke and it's been holding steady,' he said. He expects gold to consolidate within its range this week but doesn't think investors will be quick to liquidate positions just yet. 'We've got the budget deadline on Friday and the growing tensions in North Korea.'