The SNB Gold Surprise?

Have to say I was a little surprised…

Not so much about the SNB intervening to weaken the Franc to 1.20 EUR, but the aftermath was an obvious downtrend for our favourite safe haven – Gold. We heard plenty of cries when the SNB announced the news that Gold is “the last place to go” due to speculation that Japan may follow suit. Heres a look at how it went down yesterday:

Although this morning, Gold rose over 1.5 per cent to $1,842.89 an ounce after its most volatile day in 14 days, with a trading band of more than $80.

“Some investors, speculators and physical buyers have shown a lot of buying interest at current prices, as they are much lower compared to a few days ago,” said Mark Balls at a London-based bullion house.

Spot gold hit a record high of $1,920.3 on Tuesday. Technical analysis suggested that spot gold could fall towards $1,793.19 later in the day, said Reuters market analyst Wang Tao.

The faith in gold’s long-term bullish trend remained intact as concerns about global growth still run high, although the short term is likely to remain choppy.

“Concerns about economic growth in the United States and euro zone will keep supporting gold prices. Even though we may see liquidation repeatedly along the way, gold will rise towards $2,000,” Mark added.

- Sue

Sue Clark is the forex news writer at AppliedFX.com, please leave your feedback and comments on this article using the form below.

0 comments

Add your comment

Nickname:

E-mail:

Website:

Comment:

Related Readinggo to homepage

	EURJPY: Sells Off, Targets Its Psychological Support At 100.00.(0) EUR/JPY- Our position on EUR/JPY stays lower following its continued weakness and an indication of further declines. This puts forward that further price increase could see EUR/JPY going for the 100.00 point, its psycho stage. A twist beneath this point would make the pair weaker and force it to the 99.23 level where an infringement

	GBP/USD: Takes out Key Support, Set To recall The 1.5805 Level.(0) GBP/USD: There are speculations that a bearish trend will surface in the near future following a sell off of the pair and a break beneath its medium time growing trend level. Further weakness of the pair will force GBP to target the 1.5805 level. The violation of this level on April 5th will cause more

	David Cameron: it is ‘make or break’ for the euro(0) David Cameron has expressed his concern about the Euro warning that the single currency is on the verge of collapsing as the economic turmoil draws anticipation of a fresh meltdown. The Premiere is expected to give a speech today in which he warns the Euro zone leaders that the single currency is at crossroads. He

	EUR/AUD Testing Trendline Support, Threatening Reversal(0) EUR/AUD Daily Chart There has been some notable improvement in the EUR/AUD pair since it has moved from 1.2130 to around 1.2920 since Feb 2010. Noteworthy is the fact that this improvement is just beneath 50 percent retracement of a downtrend in the period between Nov.2011 to February 2012. It moved from 1.3805 to about

	Alpari Launches Alpari JForex PAMM Solution(0) Alpari is proud to present the new Alpari JForex Pamm Terminal which has been powered by the Dukascopy Bank. This is simply a creative white label idea for all professional financial managers as well as CTA’s. This product provides a whole range of financial management tools meant to improve trading of controlled accounts. With Dukascopy’s

Currency Trading Basics

About AppliedFX.com

AppliedFX.com was formed in early 2010 to fill a gap in the forex market - currency trading basics. Many of the major forex sites are intimidating for new traders, often filled with complex material and confusing trading terminology.

AppliedFX.com offers a fresh perspective to the traditional forex trading course. With easy to digest content, 100% no jargon and a strong focus on newcomers, our site will guide you through the process of becoming a successful forex trader.