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Gold and Silver Jump as
Swiss Franc Cap Gets Cut




Gold jumped above key support levels this week, as a reaction to the Swiss National Bank's action to abandon the peg to the euro (the 1.20 euro cap was removed).
The Swiss frank has gained strength versus the euro and now trades at a parity with it.
Gold has jumped above the 1,280's and silver is in the 17.70's as investors watch the evolution of the metals on the markets.
Some experts are already predicting monetary easing in the eurozone and many are expecting a positive year for gold investors in 2015.

Friday's Bloomberg article on the subject is telling us that the Swiss National Bank expected the franc to settle between 1.15-1.10 per euro. Instead, it ended up trading at parity with the euro.

The ECB is expected to engage into a monetary easing programme and the Swiss wanted out of the link in order to protect their currency's strength. The measure has proved to be an overshoot, a situation that has gotten out of control, fuel to investment metals.

The Swiss frank and the euro are decoupled and the mid-term effects are rather unpredictable.
In order to be able to determine future trends for gold, one should watch the gold's price in Swiss francs, oil's price in US dollars and the euro - US dollar exchange rate, among others.

Gold has reached a 4-month high, closing at 1,279.34 $ and silver neared 18 $, closing at 17.77 $.





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