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.
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