The vote will be held place on November 30. The central bank would have to hold at least a fifth of its assets in gold, compared to 7.8% last month, and would be prohibited from selling holdings. Analysts believe the SNB would be required to purchase 1,500 metric tons of gold, or about $62.2 billion at current market rates, to meet requirements.
Gold prices have experienced significant moves in response to central bank policies. For instance, bullion prices have also been gaining after Russia added to its gold reserves in an attempt to support its quickly depreciating ruble currency, Bloomberg reports.
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Tom Lydon’s clients own shares of GLD.