Euro was traded in the red zone on early Monday after the election in Germany enabled a far-right party, the AfD, to join the parliament for the very first time since 1945. Although Chancellor Angela Merkel won a fourth term in the office, she will still have to struggle to form a governing coalition. Anti-immigrants sentiments have weakened her party in parliament. In reaction to the election results, the euro declined by more than 0.3 percent closing at $1.1922.
The New Zealand dollar lost strength as well. It declined by 0.7 percent closing at $0.7285. The currency was affected by the political uncertainties as no party was able to score a clear majority in the election on Sunday.
The price of gold went lower again on Monday’s opening bell following the euro’s decline after the election in Germany. The strength of the dollar also had a negative effect on the precious metal.
U.S. gold futures dropped about 0.2 percent to settle at $1,295.30 an ounce for December delivery. Spot gold edged down by 0.4 percent and finished trading at $1,292.40 an ounce after falling by 1.7 percent on the previous week.
SPDR Gold Trust advanced by 0.45 percent to 856.08 tonnes on Friday compared to Thursday’s 852.24 tonnes.