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Swiss Franc Collapses 7% Against the USD, EUR and Gold – Swiss National Bank to Fix CHF to EUR and Debase Currency

Posted By admin On September 6, 2011 @ 8:18 am In Money Watch | Comments Disabled

Gold Core [1]
Sept 6, 2011

Currency markets have seen massive volatility this morning after the Swiss National Bank decision to fix the Swiss franc to the euro.

Gold is trading at USD 1,899.50, EUR 1,339.10, GBP 1,177.30, CHF 1,611.10 (up from CHF 1,486.50 yesterday) and JPY 146,350 per ounce. Gold is down 0.18% in dollar terms and strong physical demand continues at these levels.

Just prior to the announcement, spot gold for immediate delivery had risen to a new record nominal high of $1,921.15/oz in early morning trading in Europe.

Swiss Franc Collapses 7% Against the USD, EUR and Gold – Swiss National Bank to Fix CHF to EUR and Debase Currency goldcore bloomberg chart1 06 09 11
Cross Currency Table

Then just before 0900 hours GMT came the news that the Swiss National Bank has decided to fix the country’s exchange rate at 1.20 Swiss francs per euro. The SNB indicated it would buy an unlimited amount of euros regardless of the risk to maintain that value.

  • A d v e r t i s e m e n t

In a matter of minutes, gold fell 3% from the high of $1,921.15 to an inter day low of $1,862.72. It then recovered as quickly and surged back to over $1,912/oz.

Gold’s London AM fix this morning was USD 1,891.00, EUR 1,330.75, GBP 1,172.86 per ounce. Gold fixed lower in all currencies (USD 1,896.50, EUR 1,341.13, GBP 1,174.67 per ounce).

The SNB announced the currency fix because of what it called “the current massive overvaluation of the Swiss franc.”

It said it will “no longer tolerate” an exchange rate below the minimum rate of 1.20 francs, which it said is still high.

Full article here [1]

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URL to article: http://www.prisonplanet.com/swiss-franc-collapses-7-against-the-usd-eur-and-gold-%e2%80%93-swiss-national-bank-to-fix-chf-to-eur-and-debase-currency.html

URLs in this post:

[1] Gold Core: https://www.goldcore.com/goldcore_blog/swiss-franc-collapses-7-against-usd-eur-and-gold-%E2%80%93-snb-fix-chf-eur-and-debase-currency

[2] THEY DID IT: Swiss National Bank Makes Epic Intervention Move, Sending The Swiss Franc Plunging: http://www.prisonplanet.com/they-did-it-swiss-national-bank-makes-epic-intervention-move-sending-the-swiss-franc-plunging.html

[3] Global Currency Wars Sees Swiss Franc Devalue 8.5% Against Gold In Week: http://www.prisonplanet.com/global-currency-wars-sees-swiss-franc-devalue-8-5-against-gold-in-week.html

[4] SNB Intervenes To Lower “Massively Overvalued” Franc, Leaves Gold As Only “Safe Haven” Currency: http://www.prisonplanet.com/snb-intervenes-to-lower-massively-overvalued-franc-leaves-gold-as-only-safe-haven-currency.html

[5] Dollar Hits Record Low Against Swiss Franc: http://www.prisonplanet.com/dollar-hits-record-low-against-swiss-franc.html

[6] Swiss To Vote On Gold Repatriation – “Gold Is The Only Valuable Asset On The SNB’s Balance Sheet”: http://www.prisonplanet.com/swiss-to-vote-on-gold-repatriation-gold-is-the-only-valuable-asset-on-the-snbs-balance-sheet.html

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