Investors pile into gold after Swiss bank move

Thursday, January 15, 2015
By Paul Martin

CNBC.com
Jan. 15, 2014

Gold prices jumped more than 2 percent after earlier hitting 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.

Spot gold rose as much to its highest level since Sept. at $1,260.30 an ounce in earlier trade and was last up 2.4 percent at $1,259 an ounce.

U.S. gold futures for delivery in February rose 2.2 percent to $1,262 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.

European stocks plunged and the dollar fell 0.2 percent against a basket of main currencies after the Swiss National Bank’s move, which is seen potentially preceding outright money-printing by the European Central Bank at its policy meeting next week.

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