Sterling-priced spot gold has jumped on the hung parliament result

Courtney Goldsmith
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The safe have asset rose on political uncertainty (Source: Getty)

Sterling-priced gold shot to a seven-week high this morning after the General Election resulted in a hung parliament.

The bullion boost comes amid uncertainty over the Conservative party's failure to win a majority, which caused the pound to plummet.

Spot gold prices rose more than two per cent before trading at 1.58 per cent to £1,001.75 an ounce at the time of publishing.

US gold prices retreated somewhat, trading 0.24 per cent lower at $1,276.40 per ounce at the time of publishing.

Read more: Theresa May to seek Queen's permission to form government

“It's rare that political events move gold prices directly, but the fall in sterling is clearly driving bullion higher for UK investors and savers," said Adrian Ash, director of research at BullionVault, the largest online platform for trading physical gold.

"Going into Thursday's vote, UK gold investors had trimmed their positions overall, taking profit at what were 7-week highs.

"Traders were not as active as they were during the early hours of the Brexit referendum result, yet BullionVault saw four times the traded volume normally seen between the time the first exit poll was announced at 10pm and 9am this morning."

Read more: Hold the front pages: How the newspapers covered shock election result

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