Precious Metals Soar on Swiss Franc Surprise; “This was a gold rally,” say analysts

In an announcement that caught world completely off-guard, the Swiss National Bank (SNB) unexpectedly ditched its 3-year cap on the franc, sparking a currency chaos that pushed gold prices up to 4-month highs, climbing up to $1,261.38 an ounce.

According to Gold Investing News, the move “essentially decouples the currency from the euro” and “has boosted demand for gold as a safe haven.”

Reuters reported on the dramatic shift, quoting one bank manager as saying:

“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.”

Silver reached a one-month high of $17.21 an ounce, while platinum climbed 2.1 percent to $1,254.98 an ounce, and palladium gained 1.3 percent to settle at $762.98 an ounce.

See full story on reuters.com

Photo courtesy of the Wall Street Journal online.

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