Gold Surpasses Platinum, Silver Hits $17 on SNB News
Posted by CgXchange on January 15, 2015
Gold, silver and platinum prices all jumped substantially during early morning trading Thursday, as news of the Swiss National Bank’s (SNB) abandoning of that nation’s ties to the Euro spread. The gold spot price superseded the platinum spot price around 6am EST when it rose to $1,252 per ounce. As of 2pm EST the gold price per ounce stands at $1,268 while platinum is up $21 to $1,251 per ounce. Silver prices benefited from the SNB news as well, climbing 0.6% to a a four-week high of $17 per ounce.
The SNB decided to decouple from the Euro in response to rumors that the European Central Bank (ECB) will soon begin using quantitative easing (QE) as a core aspect of its monetary policy. Many economists have blamed similar QE measures on behalf of the Federal Reserve for higher prices in the United States. Safe-haven demand, therefore, is at the forefront of many investors’ minds.
“Nobody really suspected this move so people are looking for safe haven investments,” said Julian Jessop, head of commodity strategy at Capital Economics. Ole Hansen, head of commodities strategy at Saxo Bank, agreed that gold could benefit as a safe-haven investment, as many investors are looking to flee the “carnage” caused by QE and global monetary policy that is loose overall.
Gold’s current spot price of $1,268 is a 4 ½ month high for the yellow metal. After a pair of sluggish years, rumors that the Federal Reserve could raise interest rates in 2015 has drawn investors concerned about government debt and inflation back to the fold. To claim your free copy of our 2015 Guide on Profiting from Rising Interest Rates, call the Certified Gold Exchange toll-free at (800) 300-0715 today and discover why CGE is known as “America’s Trusted Source For Gold.”