Swiss National Bank Raids Gold Price One Day Change

The heights are overwhelming. After the international gold price touched a record high of 1920 US dollars per ounce yesterday, it slumped by 60 US dollars. Despite the European debt crisis, the Fed's QE3 is expected to linger, but the price of gold approaching the $2,000 mark has been in a highly volatile pattern, and investment risks have undoubtedly been revealed in an instant.

Analysts pointed out that in the medium and long term, as long as the major economies of Europe and the United States have not seen improvement in the day, gold prices may continue to hit a new high, but the high volatility will intensify and frequent, investors should be cautious positions, suitable for short-term operations.

The one-day change in the price of gold once again caught the eye of the euro zone debt problem. The economic bottom-line worries continued to heat up, and the Fed’s QE3 was expected to linger, and gold reappeared as king. At the end of Asian markets Tuesday, spot gold hit another record high, hitting the highest level of 1920.03 US dollars per ounce.

The debt problem in Europe once again affected the nerves of investors. Germany, Italy and Greece all have their own situation. German Chancellor Angela Merkel’s party affiliation and education alliance has lost all six of this year’s regional elections.

However, a message from the Swiss National Bank quickly suppressed the price of gold. According to Dow Jones Newswires on the 5th, in the face of the regaining CHF, the SNB suddenly announced on the 6th that it would adjust the exchange rate policy and set the EUR/CHF floor at 1.2000. The safe-haven assets plunged across the board. The international spot gold European market fell out of its historical high of US$1920/oz in early trading and fell to US$1,859 per troy, the largest drop of US$60, but it then stabilized and remained unchanged at US$1897.66 per ounce. .

The Swiss National Bank said yesterday that the central bank will take further measures when the economic outlook and the deflation risk situation are in need. The substantial overvaluation of the Swiss franc exchange rate poses a serious threat to the Swiss economy and poses a risk of deflation.

However, this decision of the SNB has long been beneficial to gold prices. According to Dow Jones Newswires on the 6th, Andrey Kryuchenkov of VTB Capital stated that due to the continuous intervention of the central bank, if the Swiss franc and the yen are no longer the choices for safe-haven assets, what would people buy? In the long run, this is good for gold. Analysts said that this is also an important reason why gold prices stabilized late yesterday.

The medium and long-term may continue to rise. "From the point of view of the euro zone and the U.S. economy, there is a risk of further deterioration. In particular, the debt crisis in Europe is deepening. As long as the degree of influence is intensified, gold can gain further support. Therefore, in the medium to long term The overall trend of gold prices will be upwards," said Xie Chun, vice president of the Guangdong Gold Association, told the Nanfang Daily.

Xie Chun analyzed that the global funds are now seeking safe haven. As the world’s second-largest currency, the euro was hit by the European debt crisis, and the hedge funds turned to the US dollar and gold. In the international market, there has been a rare simultaneous rise in the dollar and gold. However, from the perspective of commodity attributes, gold is denominated in U.S. dollars, which should have a negative correlation with the latter. "Now gold is more a financial instrument."

Analysts pointed out that as the debt crisis in Europe is prone to cause a full-blown crisis, it is expected that the risk aversion in the financial markets will be difficult to calm in the short term. Therefore, capital flows to gold, yen and other safe-haven assets may remain large. Moreover, after the SNB's heavy intervention, the Swiss franc, which has long been regarded as a hedger, is expected to continue its unbridled rise. Therefore, the funds flowing into gold may increase further, which will increase the price of gold.

UBS analyst Edel Tully said that as gold has experienced a period of consolidation, now that Europe's debt problem has once again escalated, gold prices have been strongly supported and spot gold will have a new and surprising increase.