Gold prices jumped to a 4-month high on Thursday as European shares and the dollar turned lower after a shock move by Switzerland to abandon its three-year cap on the franc sent Europe’s shares and bond yields tumbling.
U.S. gold futures for delivery in February settled $30.30 higher, at $,264.80 an ounce, its highest close since early September. Spot gold rose as much to its highest level since Sept. at $1,260.30 an ounce in earlier trade and was last up 2.3 percent at $1,257 an ounce.
“Gold is gaining from a risk-off situation because nobody expected the Swiss central bank not to keep that cap, and this has created potential big losses in many places and is obviously triggering some flight to safety,” Saxo Bank senior manager Ole Hansen said.
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