Gold slides ahead of Swiss vote

November 27, 2014

London (Nov 27)  Spot gold inched lower in European trading on Thursday as dealers remained cautious ahead of an upcoming Swiss referendum on the country's gold holdings.

Markets have been rattled by the "Save Our Swiss Gold" referendum on November 30. If the referendum is successful, it would force the Swiss National Bank to hold one-fifth of its assets in gold within five years, prohibit the bank from selling any of its gold in the future, and require the repatriation of Swiss gold held overseas.

"The Swiss Gold Referendum that is due to take place on Sunday is also likely to have cast its shadow," said Commerzbank in a note to clients, referring to today's gold price.

Elsewhere, the bank added that it appears some market participants have "squared their positions" ahead of the long weekend, with US markets closed for the Thanksgiving holiday.

At 1150 GMT, Spot gold was trading 0.2 per cent lower at $US1195.70 a troy ounce.

Source: BusinessSpeculator

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