Gold Near Four Month High After Swiss Shock

January 19, 2015 Share Print 0

Switzerland’s surprise move to end the cap on the franc sparked a rally in gold, driving the metal above platinum by the most in almost two years.

Gold is trading near a four-month high after the Swiss National Bank decided on Jan. 15 to let the currency trade freely against the euro. Investors boosted bullion holdings by the most in three years at the end of last week.

“There’s a lot of uncertainty, risk aversion, and seeking a refuge,” Robin Bhar, an analyst at Societe Generale SA in London, said by phone. “These are the very ingredients that gold thrives on.”

Gold for immediate delivery lost 0.2 percent to $1,277.93 an ounce by 1:17 p.m. in London. Platinum fell 0.2 percent to $1,264.63. U.S. financial markets are closed for Martin Luther King Day.

An ounce of bullion bought as much as 1.0129 ounces of platinum in London, the most since April 2013, according to data compiled by Bloomberg.

via Bloomberg

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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.