Switzerland’s Monetary Policy Change – GOLD Rallies
Summary
- The Swiss National Bank’s decision to end its policy to peg the Swiss franc to the euro stirred up the financial markets.
- The decision seems to have also pulled up the price of GLD.
- How SNB’s decisions relates to the recent rally of GLD.
The big news from the Swiss National Bank to stop pegging its currency to the euro has shocked the foreign exchange markets. Some analysts have also linked this move to the recent recovery of gold, including the SPDR Gold Trust ETF (NYSEARCA:GLD). This relation, however, isn’t straightforward – let’s examine the recent rally of GLD.