Gold It is likely to break the US $ 1,300 investors rush to hedge risks and buy safe-haven assets in the wake of the Swiss currency disorders.
“I got people to get rid of dollars, and bought gold after the Swiss franc move and drop the euro,” said Mohammed Shakarchi, owner of Gold Emirates Dubai-based refinery. “Everyone has been affected by what was done by Switzerland.”
Since the SNB’s surprise move on Thursday to abandon the roof of the franc against the euro and gold it has advanced more than 4.5 per cent.
Spot gold closed transactions in the $ 1,275.50 on Friday on the Comex in New York.
Said Pradeep Unni, senior relationship manager at Richcomm Global Services, based in Research for DMCC home may damage has been done macroeconomic enough to boost gold prices expectations.
“My personal goal is $ 1,300 plus, but if we were on the point of contact resistance $ 1,320, we should see more than the gold market. Mr. Unni will be the trend breaker.”
Since Thursday, has gone at least two of the global foreign exchange brokerage firms to insolvency jumped Swiss companies to cover in the absence of hedging programs are considered uneccessary since the application of the maximum of 1.20 against the euro in September 2011.
“Every time we have a shock system just like what happened with the Swiss Central Bank , investors go back and re-think in the presence of more gold to hedge against risk,” said Tariq Qaqish, head of asset management at Al Mal Capital in Dubai.
Said Noureddine Hamouri, chief market strategist at ADS Securities in Abu Dhabi Swiss National Bank’s decision to take out the floor against the euro is very important for gold.
“It is likely to ease its sales of gold, which should enhance its status as a safe IEA banking haven,” said Al Hamouri. “It was used in the past to sell gold to buy the euro.”
Mr. Al Hamouri said is likely to trade between $ 1,300 and $ 1,400 this year, while any decline will be limited over the barrier of $ 1,300 gold.
Professor Nuno Fernandes in the IMD Business School in Lausanne, Switzerland Swiss National Bank has been the accumulation of enormous reserves of foreign currency to keep the Swiss franc at 1.20 per euro.
Mr. Fernandez bank’s balance sheet has doubled in three years to 500 billion Swiss francs (Dh2.13 trillion), leaving the IAEA banking Energy highly vulnerable and suffer from the loss of 100bn and CHF with a re-evaluation by 20 per cent of the franc last week. “The decline in the stock and the Central Bank of the Swiss close to 70bn francs to a negative value of about 20bn francs mark to market,” said Fernandez.
It is likely to continue to accumulate reserves of gold this year, which should support prices, HSBC Securities (US) wrote in a report last week, the central banks. HSBC said the central banks, which were big buyers of goods since 2010 after two decades of sales, is expected to add 400 tons this year.