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Gold Moves Higher As SNB Ditches Franc Cap

Published 01/16/2015, 04:44 AM
Updated 07/09/2023, 06:31 AM
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Gold price rose late Thursday, after the Swiss National Bank (SNB) ended its minimum exchange rate on the EUR/CHF and lowered pushed its interest rates deeper into negative territory.

Investors fled risky assets in favor of the safe-haven metal the following SNB’s sudden reversal of its key policy, where the SNB ended its minimum exchange rate of 1.20 franc/euro and pushed interest rates deeper into negative territory, cutting the three-month LIBOR rate to -0.75% from -0.25%.

Gold prices drew support from the bank’s attempt to control the exponential rise of the Swiss franc, which negatively impacted the Swiss economy.

Spot gold rose by 0.81% around $1,238 an ounce at 10:00 GMT, compared to the opening levels of $1,228 an ounce.

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