Gold Prices Notch a Small Gain But Watch For Volatility Sunday Night

Kitco News -- After dropping to their lowest level in a week, gold prices notched a small gain on Thursday. June gold GCM7, -0.04% added on 40 cents to settle at $1,283.80 an ounce. Peter Hug, global trading director for Kitco Metals said he is expecting gold to trend firmer into the weekend. He noted that volatility could surface at the Asian open on Sunday night as investors digest the outcome of the first round of France's election.

"[T]raders are reluctant to short the market ahead of this weekend's first round of French elections said Hug. "Without a surprise news bite today, gold should trade the $1,275 - $1,290 range," Hug added. He also shared that physical gold buying has been prominent in Asia as investors remain wary of geopolitical risks with North Korea but North American demand remains anemic.

This article is commentary by an independent contributor.