Asian Markets Shrug off Swiss Gold Sales Announcement

Source:

The announcement late last week that Switzerland's central bank would sell 20% or 250 tonnes of its gold holdings has apparently been shrugged off by international markets today.

The announcement late last week that Switzerland's central bank would sell 20% or 250 tonnes of its gold holdings has apparently been shrugged off by international markets today.

Renowned as a staunch supporter of gold, Swiss National Bank's announcement Thursday that it was planning to sell 250 tonnes of gold before the end of 2009 did cause gold prices to fall to $649.50/oz Friday on the LME. However, gold rebounded to a high of $656.50/oz later in the day.

Asian markets shook off the announcement this morning as gold rose to its highest levels in more than a week as the U.S. dollar declined, increasing the appeal of gold and silver as a hedge against U.S. currency. Spot gold hit an intraday high of $656.50 an ounce before declining to $656.20/oz.

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