Gold Steady Ahead of French Elections

Gold held steady on Friday, with safe-haven demand remaining intact as investors kept an eye on the upcoming French presidential vote that is seen as too close to call.

Spot goldwas down 0.1 percent at $1,280.01 per ounce, as of 0722 GMT, on track for its first weekly drop in six.

U.S. gold futures slipped 0.2 percent at $1,281.40.



“I would expect investors to stay on the fence… they would likely be market-watching rather than market-trading ahead of the French elections on Sunday, especially when there is no clarity,” OCBC analyst Barnabas Gan said.

“Into the near term, if the geopolitical tensions intensify, there is a chance that gold prices will reach $1,300 or more.”

A closely-watched Cevipof opinion poll published earlier this week showed frontrunners Emmanuel Macron and Marine Le Pen both losing some momentum ahead of Sunday’s first round, and conservative Francois Fillon and far-left candidate Jean-Luc Melenchon still in contention for the second round run-off.

“Assuming the weekend passes without surprises election-wise, there is potential for a correction on Monday as safe-haven hedges are lightened,” said Jeffrey Halley, senior market analyst, OANDA.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza