Gold Rallies As Swiss Abandon Euro FLoor

• Gold’s ahead by 1.4% to $1,252 per ounce – its highest level in three months – as the SNB, after nearly four years, gives up trying to defend the CHF 1.20 floor under the euro/franc exchange rate.
• With the franc higher by 14% at last check, gold is cratering in Swiss terms, but is nicely higher when measured against all other currencies.
• GLD +1.8% premarket
• The gold miiners are liking the news as well, and the GDX is up 3.6% premarket.

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Previous News:

• The Swiss National Bank unexpectedly scrapped its cap on the franc today to fight recession and deflation threats after investors fleeing the euro zone crisis pushed the currency to record highs.
• Minutes after the announcement the franc had soared by almost 30% in value against the euro, sending the safe-haven currency crashing through the 1.20 per euro limit it introduced on Sept. 6, 2011.
• The euro is now down 13.9% against the franc at $1.0345.

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