Video: No French Love Affair For Gold, But Rebounds From 2 Week Low

Safe-haven assets were hit hard Monday by rallying risk assets including the euro and world stock markets following the outcome of the first round of France's presidential election. Gold was no exception, feeling the heat and ending the day lower. June gold futures dropped $11.60, or 0.9%, to close at $1,277.50 an ounce, but off a session low of $1,266. May silver ended little changed at $17.86 an ounce. Monday, French far-right candidate Marine Le Pen, who came in second in Sunday's first-round election, said she would be 'temporarily' stepping down as leader of the National Front party to focus on the presidential election.

However, investors seem to be preferring risk as French centrist candidate Emmanuel Macron topped the field in Sunday and seems favored to win the May 7 election. "Remember Clinton was supposed to win and there wasn't supposed to be a Brexit," cautioned veteran trader, Todd 'Bubba' Horwitz of bubbatrading.com. "Putting that aside, there is an underlying strength in gold right now," Horwitz said, noting that the yellow metal came off its session lows on Monday despite a rallying stock market.