GOLD edged up to about $1 200 an ounce yesterday after better-than-expected US economic growth data boosted the dollar only briefly and as the market looked to a Swiss referendum on central bank gold reserves for more trading cues.
Gold was fixed at $1 199 an ounce (R422 627 a kilogram) in London yesterday, $1.50 stronger than Monday’s final fix.
A rightwing Swiss party called the November 30 vote, aiming to prevent the Swiss National Bank from offloading its gold holdings and obliging it to hold at least 20 percent of its assets in gold, compared with 8 percent last month.
While opinion polls showed that support among Swiss voters for the initiative was fading, a “yes” vote could boost prices in the longer term, traders said.
“The polls indicate a “yes” vote is unlikely… if it happens, we could see a shortlived reaction in the price of gold, but it’s not like other central banks will follow, because it wasn’t a central bank decision,” said Natixis analyst Bernard Dahdah. – Reuters