Swiss pegxit put a $70 rocket under gold prices but just wait for the ECB’s QE next week to send prices to the moon
GoldSeek.com
Sunday, 18 January 2015
So the Swiss referendum on gold at the end of last year did prove to be a decisive point in the gold market cycle, after all. The fall to $1,138 on the ‘no’ vote marked the low of the cycle. However, for the rocket to send gold prices to the moon this was ‘the right country, just the wrong event,’ as Ross Norman of Sharps Pixley told ArabianMoney.
That event was the de-pegging or ‘pegxit’ of the Swiss franc from the euro last week. It send gold prices soaring $70 an ounce to above $1,280 an ounce. This is not the first time the Swiss National Bank has played an important role in the gold price.
Gold all-time high
It was on September 6th 2011 that the gold price hit its all-time high of $1,923 an ounce and on that date the SNB pegged the Swiss franc to the euro at 1.20. If the pegging was the event that sent gold prices into a long correction, then it will perhaps not be so surprising if this also works in reverse.
If so that may well not be as a direct but indirect consequence of the depegging. For we have to ask, why did the Swiss do it? Do they perhaps know something we don’t about the size of the European Central Bank’s QE money printing program coming up next week?
The Rest…HERE
