Mineweb.com - investment website Swiss currency peg hits gold price - WHATS NEW | Mineweb

Mineweb.com - The world's premier mining and mining investment website Swiss currency peg hits gold price - WHATS NEW | Mineweb

Switzerland's decision to peg its currency to the euro on Tuesday shook financial markets and battered the franc, putting the price of bullion in Swiss francs for its largest daily gain in three years.Author: By Amanda Cooper (Reuters)
Posted: Tuesday , 06 Sep 2011

LONDON (REUTERS) -

Gold fell from record highs on Tuesday, after Switzerland's decision to peg its currency to the euro shook financial markets and battered the franc, putting the price of bullion in Swiss francs for its largest daily gain in three years.

The Swiss National Bank said on Tuesday it would set a minimum exchange rate target of 1.20 francs to the euro and would enforce it by buying foreign currency in unlimited quantities.

The Swiss franc tumbled by more than 7 percent against the dollar and by more than 8.5 percent against the euro, while gold priced in the currency rose by more than 7 percent, and was set for its biggest daily gain since mid-September 2008, when the global credit crunch intensified, prompting the U.S. Federal Reserve to halve rates to 1.0 percent.

Spot gold was last quoted down 0.5 percent at 0918 GMT, having risen earlier to a record $1,920.30 an ounce

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.