GOLD & SILVER PRICES RISE AFTER SWISS ABANDON CURRENCY CAP
Gold rose to a new multi-month high on after the introduction of negative Swiss interest rates was seen as a positive for the precious metals markets. Gold moved up more than 2 % on news that the Swiss National Bank will do away with its three-year currency cap of 1.20 francs per euro. Gold appears to be gaining because no one expected the Swiss central bank not to keep the cap, and this has created a potential for big losses in many market sectors and seems to be triggering some flight to safer markets. The currency cap was originally enforced in 2011 after the Swiss National Banks failed attempt to counter deflation through the purchase of foreign bonds. The European Central Bank is set to meet next week and is expected to announce a new fiscal strategy, which could be the reason behind Switzerland’s move to exit its previous monetary policy. This is all happening just one week before the European Central Bank meeting, which could add even greater pressure to the euro and send the prices of gold and silver climbing even higher. If recent precious metals trends continue through 2015, this could be an excellent year for precious metal prices.
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