Gold closes at 4-month high on Swiss shock

marketwatch.com ^

[Red in Blue PA]

SAN FRANCISCO (MarketWatch) — A shocking move by the Swiss National Bank sent the dollar reeling and propelled gold to close at its highest level in four months Thursday.

In mid-morning European trading hours, Switzerland’s central bank scrapped its long-standing floor against the euro, which sent the Swiss franc EURCHF, +1.76% soaring against the euro and the dollar USDCHF, +1.74% The central bank also cut its interest rate on sight deposits to a negative 0.75%. When the dollar falls, gold prices tend to push higher.

[pallis]

I wish I would have bought Swiss Franks yesterday.

[Jack Hydrazine]

So instead you bought some Ball Park Franks?

[pallis]

I mean Francs, sorry.

[SeaHawkFan]

...propelled gold to close at its highest level in four months Thursday.

Still about a 33% drop from all-time high. Hardly a "surge" the article claims.

[Sam Gamgee]

The financial media is pretty much always making things up. Correlation is not causation, ect. I would argue the move is gold has little to actually do with the Swiss situation.

[SeaHawkFan]

As I have said many times, the long term value of gold is the cost to bring it to market plus an acceptable profit margin.

Like oil, there is a relatively unlimited supply of gold. It all depends on the price.

[Sam Gamgee]

Thanks to the Canadian government I saw a $34 bump in gold yesterday, as the Loonie crashed. It's all relative, so glad to see gold moving higher in other currencies outside the US dollar.