Gold Rises But Not Drastically Changed by SNB Decision

Gold traded near its highest level in four months on Friday, and despite a slight dip on the day, the precious metal was close to logging its best week of trade in ten months.

Spot gold closed 2.57 percent higher on Thursday, reaching $1,261 an ounce – a level not seen since early September – after the Swiss National Bank (SNB) rocked markets by scrapping its currency peg against the euro.

In contrast, gold lost 13 percent against the Swiss franc during Thursday’s session, as the currency surged higher.

But commodity analysts were not necessarily excited, with Joni Teves, precious metals analyst at UBS, telling CNBC Friday that it was too early to tell whether the central bank’s move was a “game changer” for gold.

Teves said the market volatility the move caused was a positive for gold—which is often viewed as “safe-haven” asset—as was the SNB’s cutting of interest rates into deeper negative territory.

via CNBC

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