Gold Prices Steady On UK Election Risk; ECB Meeting and Geopolitical Risk

Gold Prices Steady On UK Election Risk; ECB and Geopolitical Risk

by Reuters

* Gold prices could see strong intraday volatility – analyst
* UK election, Ex-FBI director testimony, ECB meeting set for later in the day
* Downside for gold is “limited” (especially in sterling)

Gold held steady on Thursday as investors awaited cues on market direction amid a number of geopolitical events later in the day that could boost the safe-haven demand for the metal.

Gold prices in UK sterling

Polling has started in the UK national elections, while the European Central Bank (ECB) may discuss dropping additional stimulus pledges at a meeting later and former United States Federal Bureau of Investigation director James Comey will testify before the U.S. Congress about his interactions with President Donald Trump later in the day.

“Unless there is a major surprise today and the Labor Party gets up over the Conservatives, I doubt there will be much reaction to gold price from the UK election. The market has already priced this,” said Cameron Alexander, an analyst with Thomson Reuters-owned metals consultancy GFMS.