Gold and silver are surging.
After a 2% spike in gold yesterday, it was up another 1% or so to $1,276 per ounce near 11 am ET. Silver jumped 1.4% to $17.32 an ounce.
Bloomberg is reporting that the move in gold comes as investors scramble for a safe haven after yesterday’s surprise move by the Swiss National Bank to remove the franc’s peg against the euro.
The euro fell 14% against the franc after the announcement, in an unprecedented move for a major currency.
There have already been major casualties following the SNB's announcement, including Interactive Brokers which lost $120 million, and Deutsche Bank which lost $150 million.
Even the SNB itself saw 12% of its reserves – about 60 billion francs – walk out the door. FXCM, the largest US currency broker, fell 90% in pre-market trading before being halted in anticipation of news related to yesterday’s event.
Here’s a chart of gold showing the big move yesterday and this morning, as the carnage became clearer.
And here’s the chart for silver.
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